Answer whether the following statements are true or false. Justify you answer. a. Consider the following representation of the Ricardian Model. Two countries, Nepal and Indonesia, produce two products - food and garments. Total labour supply in Nepal is 48 and the total labour supply in Indonesia is 60. The table provides the unit-labour requirements (az) to produce food and garments in each country. Nepal Indonesia Food 30 8 Garments 12 4 While Nepal has the absolute advantage in producing food, Indonesia has the absolute advantage in producing garments. Hence, Nepal should export food and Indonesia should export garments. True or False? Explain. b. Consider the Ricardian Model displayed in point a). Nepal has the comparative advantage in producing food, while Indonesia has the comparative advantage in producing garments. True or False? Explain. I c. It is conceivable that a country with an industry that exhibits external economies of scale, with no established advantage, would benefit by moving away from free international trade. True or False? Explain. d. Consider a monopolistically competitive industry where firms differ in productivity levels. When the industry opens to international trade, transportation and other international transaction costs may determine which firms will remain exclusively in the local market and which firms will become exporters. True or False? Explain with the support of a graph