2.1 Explain the concept of comparative advantage in terms of international trade. [2] 2.2 Determine which country/countries have absolute advantage in sand and sweets. [2] 2.3 Which country has the comparative advantage of sand and in sweets? Show your calculations by using a table and the opportunity cost method. [4] 2.4 What is the autarky price of sand in A and B? [4] 2.5 What range of prices should be offered on international markets for both countries to benefit from trade? [2] 2.6 With the aid of a graph (sweets on the x-axis), explain why both countries benefit from trade when price of 1 bag of sand is 5/12 sweets (5/12 sweets per sand). Also mention the goods that each country specialises in and the gains of trade. [12] 2.7 With the aid of a diagram which country gains from trade when the price of 1 bag of sand is 0.5 sweets? What is the value of the gain in trade for that country? [7] 2.8 Would doubling the amount of labour for country B have any impact on the results above and why? Also, what is the main concern of labour in classic trade theory or this model above? [5]