There are two countries, Mexico and Chile, and two goods, copper and oil. Copper requires copper mines as a specic factor while oil requires oil reserves as a specic factor. There is one other factor, labor, which is mobile across sectors. Assume Mexico exports oil and Chile exports copper. A. Graph the production possibilities frontier for Mexico (5 points) B. If the world price ratio of copper to oil was tamper/pail, show, on the graph above, how much copper and how much oil Mexico would produce. Label these quanties qioppg, and air (3 points) C. Show how much oil and copper Mexico consumes on the graph above. Label these quanti- ties d1 and d1 comm 0\". Draw as many indifference curves as you need to. (3 points) D. Suppose the price of exports from Chile increases (there are imports into Mexico). Show, on the graph above, how the production of oil and copper would change in Mexico. Label these quanties qoppe, and q. (3 points) E. Show how much oil and copper Mexico consumes at the new international prices. Label these values dopm and dig. Draw as many indifference curves as you need to. (3 points) F. Did the change in international prices increase or decrease income in units of oil in Mexico? (3 points)