On 2 1. Consider table below. Table 2 gives the maximum amount of wheat or cloth that Zambia and Zimbabwe could produce if they utilised fully all the factors of production at their disposal with the best level of technology available to them. Suppose further that each nation faces constant costs in producing both cloth and wheat. Table 2 Zambia Zimbabwe Wheat(million bushels per year) 50 120 Cloth (million yards per year) 150 80 (a) Draw the pps for Zambia and Zimbabwe (separately) (2 marks) (6) in which commodity does Zambia and Zimbabwe have a comparative advantage (state why) (2 marks) (c) Assume Zambia produces 6oC and 30W and Zimbabwe produces 40C and bow in the absence of trade: Show on the ppl. the point of consumption and production for both countries (1) In autarky (2 marks) if each nation specializes completely in the production of the commodity of its comparative advantage and then trade 50 units of it for 50 units of the commodity of its comparative disadvantage. (6 marks) (d) Calculate the gains from specialization and trade for the two countries