a. Suppose that a small economy has L workers and that its technology requires 4 worker-hour per unit of food and 6 worker hours per unit of cheese. Suppose that in autarky, both products are demanded by consumers. What is the relative price of cheese to food at home in autarky? b. Suppose in the Foreign country it requires 3 worker-hour per unit of food and 1 worker hours per unit of cheese. Who has absolute advantage in cheese production? food production? Explain who has comparative advantage in cheese production and food production ? Explain. c. When the countries open to free trade, under the normal assumptions of the Ricardian model, who will produce what , import what ? export what ? (Assume there is complete specialization. You can use a graphical representation of trade if you prefer) d. Can you say anything about the relative prices of cheese to food? Explain e. Now assume that the world price of cheese is 10 and the world price of food is 10, what are the wages at home and in the foreign country? f. Write down the sources of gains of trade.