Q5(b) (13 points) Consider the same model from 4a, copied here: [There are two countries, Home and Foreign, and two goods, wheat and cars (put cars on the horizontal axis). There is a single factor of production, labour. The unit labour requirements for Home in wheat and cars are 2 and 4 respectively and for Foreign, they are 6 and 5. Home has 1800 units of labour, while Foreign has 1200 units of labour.] b) Draw and carefully label both of the production possibility frontiers for these countries. Place cars on the horizontal axis. In the absence of trade and assuming that both goods are produced in each country, then what are the prices in each country? What are the production and consumption points? (Handwritten - Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate & upload a picture of your work) + Drag and drop your files or Click to browse... Q5(c) (5 points) Consider the same model as 4a, copied here: [There are two countries, Home and Foreign, and two goods, wheat and cars (put cars on the horizontal axis). There is a single factor of production, labour. The unit labour requirements for Home in wheat and cars are 2 and 4 respectively and for Foreign, they are 6 and 5. Home has 1800 units of labour, while Foreign has 1200 units of labour.] C) Draw and carefully label the World Relative Supply (RS) schedule. (3 marks) (Handwritten - Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate & upload a picture of your work) + Drag and drop your files or Click to browse... Q5(d) (14 points) Puhedt equal to Consider the same model as 4a. Pears d) Allow for trade. Let the World Relative Demand (RD) curve intersect the World Relative Supply (RS) curve at relative prices 1. Draw the RD curve on the diagram in (C). Given this price ratio, which good will be produced at Home and Foreign? Demonstrate the pattern of trade, using trade triangles, carefully labeling exports and imports on the diagrams from part (b), as well as the points of production and consumption. Which country (ies) gain(s) from trade? (Although you can use the diagrams from part (b), you must take a separate picture for this question, 4d). (Handwritten - Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate & upload a picture of your work) Q5(b) (13 points) Consider the same model from 4a, copied here: [There are two countries, Home and Foreign, and two goods, wheat and cars (put cars on the horizontal axis). There is a single factor of production, labour. The unit labour requirements for Home in wheat and cars are 2 and 4 respectively and for Foreign, they are 6 and 5. Home has 1800 units of labour, while Foreign has 1200 units of labour.] b) Draw and carefully label both of the production possibility frontiers for these countries. Place cars on the horizontal axis. In the absence of trade and assuming that both goods are produced in each country, then what are the prices in each country? What are the production and consumption points? (Handwritten - Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate & upload a picture of your work) + Drag and drop your files or Click to browse... Q5(c) (5 points) Consider the same model as 4a, copied here: [There are two countries, Home and Foreign, and two goods, wheat and cars (put cars on the horizontal axis). There is a single factor of production, labour. The unit labour requirements for Home in wheat and cars are 2 and 4 respectively and for Foreign, they are 6 and 5. Home has 1800 units of labour, while Foreign has 1200 units of labour.] C) Draw and carefully label the World Relative Supply (RS) schedule. (3 marks) (Handwritten - Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate & upload a picture of your work) + Drag and drop your files or Click to browse... Q5(d) (14 points) Puhedt equal to Consider the same model as 4a. Pears d) Allow for trade. Let the World Relative Demand (RD) curve intersect the World Relative Supply (RS) curve at relative prices 1. Draw the RD curve on the diagram in (C). Given this price ratio, which good will be produced at Home and Foreign? Demonstrate the pattern of trade, using trade triangles, carefully labeling exports and imports on the diagrams from part (b), as well as the points of production and consumption. Which country (ies) gain(s) from trade? (Although you can use the diagrams from part (b), you must take a separate picture for this question, 4d). (Handwritten - Answer in complete sentences/paragraphs, with carefully-labelled diagrams as appropriate & upload a picture of your work)