oblem 1. Read your class notes (this topic is NOT covered in the text and was only covered in class.) Put the first four non-zero digits of your student ID in the spaces below for the First three questions that 8 ( A ) 5 ( B ) 3 ( C ) 6 ( D ) (Example: If your student number is 0678031 this line should be 6 (A) Z(B) 8(C) 3(D) This problem is a version of the Intertemporal Trade model in chapter 6 based on the class notes. There are two countries, Home and Foreign, that both produce a current consumption good Oc and a future consumption good OF. In the home country either 10A consumption goods can be produced in the present or 10(A+1) consumption goods can be produced in the future. In the foreign country either 10B consumption goods can be produced in the present or 10(B+1) consumption goods can be produced in the future. (Note if A and B are the same than use C to construct the foreign countries current and future consumption amounts.) In each country the opportunity cost of producing current consumption goods is constant. (Using my student ID example Home produces either 60 current consumption goods or 70 future consumption goods and Foreign production 70 current consumption goods or 80 future consumption goods. Assume that preferences (the same for all individuals in both countries) can be summarized by the utility function U = QcD/(D+2)Qp2/(D+2) where D is the last of the non-zero digits of your student ID number above. The marginal utility of current consumption goods is [D/(D+2)](QF/Qc)2/(D+2) while the marginal utility of future consumption goods is [2/(D+2)](Qc/QF)D/(D+2). (Using the student ID example the utility function would be U = Q3/(5)02