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Part A (50%): Answer TWO from the three questions given. Questionl a) Brieyr discuss the assumptions of Ricardian model? [5] b} Table 1 shouts the output per Worker per day of United States and Japan under four different hypothetical situations. Tons of Steel mull-n mum-rumm- i) In each case identify the good in which the United States and Japan have an absolute advantage. [10] ii) With respect to Table 1, indicate in each case the good in which each country has a comparative advantage. [10] Quietly Suppose that Table 2 showed factor endowments of Australia and New Zealand. And the production requirement for a unit of steel is 2 machines and 8 workers, and the requirement for a unit ofbreed is 1 machine and 3 workers. Table 2: Factor of Endowments New Zealand a) Identify the factor abundant for each country. Show your calculations. [6] b) Identify the factor intensity for each good. Show your calculations. [6] c] According to the Hecksher-Ohlin Theorem, which country would export bread? Explain. [7] d} What is the prediction of Stolper Samuelson Theorem if there is a relative increase in the price of steel? [6]