Pleas complete this question from Ricardian theory of trade. Please answer from option 4 to 7. Fit to widthHW#1: Ricardian Theory of Trade - AssignmentUse the following assumptions to solve this assignment:1. There are three countries - Argentina, Britain and Canada.2. Each country produces and consumes two kinds of goods – crude oil and beef.3. All countries make their goods from a single type of input – labor- and eachcountry has 60 hours of labor available to produce crude oil and beef.4. Each country demands 2 barrels of crude oil. This assumption simply means that acountry must have exactly 2 barrels of crude oil – it may produce themdomestically, it may import them from abroad, or it makes some domestically andimports the rest.5. Countries produce goods using the technology described in the table below:TechnologyHours of labor needed to produce one unit of goodArgentinaBritainCanadabarrel of crude oilpound of beef203012210Using the above assumptions, answer the following questions:1. Calculate the quantities of crude oil and beef produced in each country in autarky(when they do not trade and each country produces its own crude oil and beef)Quantities produced ArgentinaBritainCanadaTotalAutarky barrel of crude oil(No trade) pound of beef2. Order the countries according to their absolute advantage in production of crudeoil3. Order the countries according to their absolute advantage in production of beef4. Consider the case where countries are free to specialize and trade. In the tablebelow calculate each country's opportunity cost of producing one unit of eachgood.Argentina20BritainCanadabarrel of crude oil3012pound of beefOC of 1 barrel of oilOC of 1 pond of beef5. Calculate the quantities of crude oil and beef produced in each country, consistentwith the country's comparative advantage.210 Quantities produced Argentinabarrel of crude oilpound of beefBritainCanadaTotalTrade6. Graph each country's own PPF. For consistency, plot crude oil on the horizontalaxis.7. Graph the PPF for all three countries combined.

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4. Consider the case where countries are free to specialize and trade. In the table below calculate each country's opportunity cost of producing one unit of each good. Argentina Britain Canada barrel of crude oil pound of beef OC of I barrel of oil OC of I pond of beef 20 30 12 2 10

4. Consider the case where countries are free to specialize and trade. In the table below calculate each country's opportunity cost of producing one unit of each good. Argentina Britain Canada barrel of crude oil pound of beef OC of I barrel of oil OC of I pond of beef 20 30 12 2 10

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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