This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the unit labor requirements in Foreign and Home for each of two goods. Use this information to answer the question That follows. Cheese Whiskey Home am = 4 hours per pound aLW = 5 hours per gallon . e e FOI'BIgI'I aLc = 2 hours per pound aLW = 4 hours per gallon where: 3L0 = number of labor hours needed to pmduce a unit of cheese in Home; aLw = number of labor hours needed to produce a unit 01 whiskey in Home. number of labor hours needed to produce a unit ot cheese in Foreign; number of labor hours needed to produce a unit of whiskey in Foreign. Which of the following statements is tme'P O A. Foreign has the absolute advantage in both cheese and whiskey production and the comparative advantage in cheese produdion. O B. Home has the absolute advantage in both cheese and whiskey production and the comparative advantage in cheese production. 0 C. Foreign has the absolute advantage in both cheese and whiskey production and the comparative advantage in whiskey produc1ion. O D. Home has the absolute and comparative advantage in whiskey production