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4. Suppose the world consists of mo countries, 1 and 2. We will solve for the equilibrium in autarky rst and then we open the economy to trade. Country 1 is endowed with L1 workers. Each worker has one unit of time with which to produce and can choose to produce either product A or product B (or split her time between the two). A worker can make units of product A in a unit of time or 3-13- unites of product B in a unite of time. 1 (a) Dene the production possibility set and the production possibility frontier (b) Suppose each worker preference; is given by U1(CA, 0?), where 013 is the quantity consumed of product A and CF is the quantity consumed of product B. Let Q? and Q13 denote the quantity produced of product A and B, respectively. i. List the exogenous variables ii. List the endogenous variables iii. Dene the Equilibrium (c) Suppose that U1(CA, CIR) = lln(Cf') + gln(0i3), where 51 > 0 and [32 > 0. Find the equiiibrium