This exercise applies the basic Ricardian model of one [actor and Mo goods. The table below contains the unit labor requirements in Foreign and Home for each of two goods. Cheese Wine Home em = 5 hours per pound aLW = 5 hours per gallon Foreign el; = 2 hours per pound afw = 5 hours per gallon where: ELC = number of labor hours needed to produce a unit of cheese in Home; aw\"l = number of labor hours needed to produce a unit oi wine in Home; 3;; = number of labor hours needed to produce a unit of cheese in Foreign; a * = number of labor hours needed to produce a unit 0! wine in Foreign; LW PC = the money price per pound of cheese; PW = the money price per pound of wine. In the absence of trade between Home and Foreign the unit labor requirements given above indicate that the relative price of cheese {PCiPWJ will be lower in E