QUESTION 1. Consider the Ricardian model with two countries, Home and Foreign, and two goods, X and Y. If Foreign workers have a higher real wage than Home workers and Home country has a comparative advantage in good X, we can conclude that: (a) Foreign country has absolute disadvantage in good Y. (b) Home country has absolute disadvantage in good X. (0) Foreign country cannot benet from trade with Home country. (d) If trade is allowed, in Foreign country, those labours that are employed in the production of good X will lose from trade whereas the ones employed in the production of good Y will gain from trade. (1 mark) Explain your answer clearly. Limit your explanation to 200 words. (4 marks)