(b) Suppose we have two countries, England and Spain, which each have 24 Workers to allocate across two industries, leather and wheat. We can describe each of these countries productive capabilities in the table below: (i) What is the maximum amount of leather and wheat each country can produce if they allocate all their workers to labor or wheat? (ii) Which country has the comparative advantage in leather and wheat respectively? (iii) Draw the PPF of each country labeling the intercepts and slopes of the PPFs. (iv) Draw the "World Production Possibilities frontier" which accounts for the productive capabilities of both countries combined. What is the Ricardo Point (the point where both countries specialize in the industry where they have comparative advantage)..

1. (b) Suppose we have two countries, England and Spain, which each have 24 Workers to allocate
across two industries, leather and wheat. We can describe each of these countries productive
capabilities in the table below: (i) What is the maximum amount of leather and wheat each
country can produce if they allocate all their workers to labor or wheat? (ii) Which country has
the comparative advantage in leather and wheat respectively? (iii) Draw the PPF of each country
labeling the intercepts and slopes of the PPFs. (iv) Draw the "World Production Possibilities
frontier" which accounts for the productive capabilities of both countries combined. What is the
Ricardo Point (the point where both countries specialize in the industry where they have
comparative advantage).