6. Use the beaker diagram below to show how capital moves between goods and how its rental changes relative to the price of good A and good B. (5pts) Show how the budget constraint of an unskilled worker is affected by trade. (5pts) Explain why the budget constraint has shifted. 7. Ricardo and Specific factors: The different assumptions of the Ricardo and the Specific Factor model give rise to very differently shaped PPFs. In a few sentences, explain how the PPFs are different and why. (10pts) Heckscher-Ohlin: H and F produce goods A and B in a trading equilibrium. Goods A and B use capital and labor and good A is more capital intensive than good B. H is capital abundant relative to F. All Hechscher-Ohlin Assumptions are assumed to hold