The table below contains the unit labor requirements in Home and Foreign for each of five goods as well as the relative productivity advantage of Home. Home Unit Labor Foreign Unit Labor Relative Home Productivity Good Requirement (aLi) Requirement (2 Li ) Advantage ( a Li/aLi) Cell Phones 18 6 Jackets SNU 7 3.5 Laptops 10 30 3 MP3 Players 7 8 1.14 Sneakers 8 4 0.5 If the relative Home wage (w/w*) = 2 and transportation costs are 100% of production costs, it will be the case that O A. cell phones and sneakers are nontraded. O B. jackets, laptops, and MP3 players are nontraded goods. O C. all five of the goods are traded. O D. all five of the goods are nontraded.This exercise applies the basic Ricardian model of one tactor and two goods. The table below contains the unit labor requirements in Foreign and Home for each of two goods. Use this information to answer the question that follows. Candyr Wine Home 3L6 = 4 hours per pound aLW = 5 hours per gallon Foreign * _ a aLc 2hours per pound am|I 4 hours per gallon where: aLC = number of labor hours needed to produce a unit of candy in Home; aLW = number of labor hours needed to produce a unit of wine in Home; a t = number of labor hours needed to produce a unit of candy in Foreign; LC a * = number of labor hours needed to produce a unit of wine in Foreign. LW Which of the following statements is true? 0 A. Home has the absolute and comparative advantage in wine production. 0 B. Foreign has the absolute advantage in both candy and wine production and the comparative advantage in wine production. 0 C. Home has the absolute advantage in both candy and wine production and the comparative advantage in candy production. 0 D. Foreign has the absolute advantage in both candy and wine production and the comparative advantage in candy production