2. The famous British economist David Ricardo was the rst to formulate the idea of comparative advantage in a full and complete way. Here is a version of his original example. England Portugal To produce 1 belt of cloth Labor of 1130 workers Labor of 9E] workers To produce 1 barrel of wine Labor of 120 workers Labor of ED workers Say that England and Portugal each have HUD workers. a. Which country has the absolute advantage in the production of cloth and wine? Explain your answer. b. Which country has the comparative advantage in the production of cloth and wine? Explain your answer. c. Sketch a production possibility frontier for each country in the situation before there is trade. Put cloth production on the vertical axis and wine production on the horizontal axis for each production possibility frontier. d. Assume that in the situation before trade. both countries preferred to produce at the choice where they divided their labor evenly, half and half. between the two goods. Calculate the levels of production in these economies without trade. and then construct a specific example of production and trade in which both sides are better off and able to consume at least as much of both products as a result of trade than they would have before trade