Homework Problem on Ricardian Trade Model Suppose each worker in Home can produce 4 cars or 6 TVs in a day. Assume that Home has 10 workers. a) Fill in the Production Possibility Frontier for Home TVs 0 Cars 40 35 30 25 20 15 10 5 0 60 b) Graph the Production Possibility Frontier for Home using excel worksheet. Keep cars on the vertical axis. c) What is the autarkic relative price of cars in Home? Suppose each worker in Foreign can produce 6 cars or 3 TVs. Assume also that Foreign has 10 workers. TVS 0 Cars 60 50 40 30 20 15 10 5 0 30 d) Graph the Production Possibility Frontier for Foreign using Excel Worksheet. Keep Cars or the vertical Axis e) What is the autarkic relative price of cars in Foreign? in which good does Foreign has comparative advantage? In which good does Home has comparative advantage? Why? Now suppose, the World relative price of cars is 1 car for 1TV. In which good will each country specialize? Why? h) which country will export cars? Which country will export TVS? Homework Problem on Ricardian Trade Model Suppose each worker in Home can produce 4 cars or 6 TVs in a day. Assume that Home has 10 workers. a) Fill in the Production Possibility Frontier for Home TVs 0 Cars 40 35 30 25 20 15 10 5 0 60 b) Graph the Production Possibility Frontier for Home using excel worksheet. Keep cars on the vertical axis. c) What is the autarkic relative price of cars in Home? Suppose each worker in Foreign can produce 6 cars or 3 TVs. Assume also that Foreign has 10 workers. TVS 0 Cars 60 50 40 30 20 15 10 5 0 30 d) Graph the Production Possibility Frontier for Foreign using Excel Worksheet. Keep Cars or the vertical Axis e) What is the autarkic relative price of cars in Foreign? in which good does Foreign has comparative advantage? In which good does Home has comparative advantage? Why? Now suppose, the World relative price of cars is 1 car for 1TV. In which good will each country specialize? Why? h) which country will export cars? Which country will export TVS