1.7 explain why in particular US workers employed in the phone sector gain in the Ricardian model, but that this conclusion might be less clear in a more realistic model of opening to trade.

.5. Suppose that China and the United States open to trade with each other. Suppose that the resulting world price that 1 aircraft can be exchanged for 100 phones. Draw graphs for both China and the 0.8., showing: (i) the production possibilities frontier (PPF) with no trade; (ii) the consumption possibilities frontier (CPF) with no trade; (iii) the PPF with trade; and (iv) the CPF with trade. Put aircraft on the horizontal axis. Label the diagram carefully, making sure to include the numerical values for : places where curves meet axes. (4 303) .6. In the situation of the previous part, explain clearly how you know that the US. gains from trade. (3 points)