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can i plz get specific answer of this question? 1. (30 points) Consider the Ricardian model with two countries: Hyrule and Arcadia. Arcadia requires 3

can i plz get specific answer of this question?

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1. (30 points) Consider the Ricardian model with two countries: Hyrule and Arcadia. Arcadia requires 3 hours of labor to produce 1 bushel of wheat and 4 hours of labor to produce 1 yard of cloth. Hyrule requires 2 hours of labor to produce 1 bushel of wheat and 6 hours of labor to produce 1 yard of cloth. There are 48 hours of work available both in Hyrule and Arcadia. Please answer the following questions: (a) Graph the production possibilities frontier for Arcadia. Locate wheat on the horizontal axis and cloth on the vertical one. Include in your plot the slope of the PPF and the maximum output that can be produced of each good. (4 points) (b) Graph the production possibilities frontier for Hyrule. Locate wheat on the horizontal axis and cloth on the vertical one. Include in your plot the slope of the PPF and the maximum output that can be produced of each good. (4 points) (c) Which country has an absolute advantage in wheat production? Which country has an absolute advantage in cloth production? Briey explain. (4 points) (d) Compute the opportunity costs of producing both goods in both countries. Which coun- try has comparative advantages in producing wheat? Which country has comparative in producing cloth? {8 points) (e) Suppose that Hyrule and Arcadia are trading. Each country completely specializes in one good. What is the possible range of the free-trade relative price of wheat. That is. what is minimum and maximum value that the free-trade relative price of wheat can take. (4 points} (f) Which country is likely to gain more from trade if the free-trade relative price of wheat is equal to 213? Explain your answer (6 points)

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