Labour hours needed to make 1 unit of: Good x Good y Singanesia 1/4 1/2 Mindaland 2 6 Suppose that Singanesia and Mindaland can switch between the production of goods x and y at a constant rate, without losing any time. In both countries, the production of these two goods operate on a 60-hour work week. Assuming that only labour is required to produce these two goods, answer the following questions: a) Which country has a comparative advantage in the production of good y? Briefly explain your reasoning. (1 mark) b) Sketch the weekly PPF for each country (explanation is not required), with the quantity of good x represented on the horizontal axis. The diagrams should large enough to show the details clearly. Make sure to label the diagrams completely. (1.5 marks) c) Suppose that both countries are open to (free) international trade with one another for goods x and y. 1. What is the range of mutually-beneficial terms of trade between the two countries (measured in terms of the number of units of y per x). (1 mark) 2. Suppose that Mindaland proposes to trade with Singanesia 4 units y in exchange for 10 x. Should Singanesia accept these terms of trade? Explain why. (1.5 marks)