Ricardian Model Suppose US (N) and Mexico (S) both can produce soccer balls (SB) and footballs (FB). The unit labor requirements for soccer balls and footballs in the US and Mexico are: a N SB = 10; a N FB = 2; a S SB = 10; a S FB = 10

Which country has the absolute advantage in producing football? Which country has the comparative advantage in producing football? (2 points)

Us the law of Comparative Advantage to predict the Trade Patterns between US and Mexico. (2 points)

Suppose the US has 100 workers. Draw the PPF for US. (label the slope and intercepts) (Use the quanity of Football as the X-axis) (4 points)