Q2. The table below shows hours needed to produce a unit of books and a unit of wands in two countries named Wizardland and Muggleworld. Assume Wizardland has 60,000 hours of labour and Muggleworld has 30,000 hours of labour. Hours needed to produce a unit Wizardland Muggleworld Books 15 15 Wands 10 30 (a) Construct the production possibilities frontier for two countries and for the world. Find a terms of trade that both countries would engage in trade. If a complete specialization occurs, which country should produce wands and which country should produce books? Explain. [8] (b) At what wage ratio, w/w" where w" is a wage in Wizardland and w' is a wage in Muggleworld, one country is a unique LCP of books and the other country is a unique LCP of wands? If a specialization occurs, could that be different from an outcome in part (a)? Explain. [8]