Suppose that Home uses an hour of labor to produce whiskey and then trades that output for chocolate. If PGFPW = 1, through trade Home can gain: O A. 0.25 pounds of chocolate. 0 B. 0.033 pounds of chocolate. O C. 1 pound of chocolate. O D. 0.500 pounds of chocolate. This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the unit labor requirements in Foreign and Home for each at two goods. Use this information to answer the question that follows. Chocolate Whiskey Home aLC = 6 hours per pound aLW = 5 hours per gallon - a g Foreign aLC = 2 hours per pound aLWI = 4 hours per gallon where: abs = number of labor hours needed to produce a unit of chocolate in Home; aLW = number of labor hours needed to produce a unit of whiskey in Home; 3:12: = number of labor hours needed to produce a unit of chocolate in Foreign. a ' = number of labor hours needed to produce a unit of whiskey in Foreign; LW PC = the price per pound of chocolate on wortd markets, PW = the price per gallon of whiskey on on1d markets. Which of the following statements is two? i A. Foreign specializes in the production of chocolate and whiskey. i B. Foreign specializes in the production otwt'liskey. i i . Home specializes in the production of chocolate and whiskey. .-_'.V D. Home specializes in the production of whiskey