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2. Both Canada and the US produce strawberries and footballs with constant opportunity costs. The US can produce either 10 tons of strawberries and no

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2. Both Canada and the US produce strawberries and footballs with constant opportunity costs. The US can produce either 10 tons of strawberries and no footballs, or 20 footballs and no strawberries, or any combination in between. Canada can produce either 8 tons of strawberries and no footballs, or 4 footballs and no strawberries, or any combination in between. a. Draw the US and Canadian production possibilities frontiers in two separate diagrams, with footballs on the horizontal axis and strawberries on the vertical axis. 2 points b. Which country has the absolute advantage in strawberries production? 1 point c. What is the opportunity cost of footballs in the US? What is the opportunity costs of footballs in Canada? 2 points d. Which country has the comparative advantage in footballs production? 1 point e. If Canada and the US begin trading, what will happen to the price of footballs in the US? What will happen to the price of strawberries in the US? 2 points f. How do we measure gains from trade? 1 point g. Suppose that strawberries production is a low-skilled job that mainly employs migrants. Please show on the PPF you drew in part a) the effect of lower migration in the US. 1 point

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