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QUESTION 6 Assume the framework of the immobile factor model. A country in autarky produces two goods, A and B. Which of the following statements will be true? O A and B are produced using labor and capital. Since factor mobility is restricted, it operates in a partial equilibrium setup. O Workers producing A cannot produce B O Productivity of workers in the two industries is the same O Firms can earn profit since mobility of workers is restricted and therefore labor cost is fixed. QUESTION 7 Consider a country in the immobile factor model producing cheese and bread. Which of the following gives the autarky production ratio of cheese to brea in the cheese and bread industries respectively, aLC and aLB represent the unit labor requirements in the cheese and bread industries respectively.] O LC/LB O [LC/aLC ] A [LB / aLB] O [LC/ aLB] A. [LB / aLC] O [LC A aLC] A. [LB A aLB] O aLC/ aLB QUESTION & Identify the factor for which movement between industries is the easiest. O A business analyst A weaver O A pilot O A chef O An iron ore miner