These questions help you review the Introduction and the Ricardian model. For each statement, determine whether it's T/F, and then explain why.

Marginal Product ofLobor Labor Force Shirts Apples Home MLS = 2 MPLA = 5 L =i Foreign ML; = I WLA\" = 2 L\" = 240 5. Draw the PPF for the Home country. Please label both intercepts and the slope of the PPF. (4 points). 6. The opportunity cost of apples in terms of shirts is 11'?! in the Foreign country. 7. IfMPL; doubles (from 2 to 4), then the opportunity cost of apples in terms of shirts will decrease by 50% in the Foreign country. 8. In the closed-economy equilibrium, 1 shirt sells for 5l2 apples in the Home country