d) Assume that each person specialises in one product and that the terms of trade (the price that they agree to trade at) is 4 rings for 1 necklace. Does each person gain from trade - as compared to autarky (pre trade) and why? (2 marks)

given that Harry can produce (4) necklaces or (8) rings in one day;

Leila can produce (2) necklaces or (8) rings in one day; and

In autarky (i.e., self-sufficiency without trade) each person produces both goods