Consider the following production data for England and 
(a) Which country has an absolute advantage in the production of each good? Which country has a comparative advantage in the production of each good?
(b) Assuming each country spends half its income on cheese and half on wine, and wine is the numéraire good, with no trade, autarky, what is the wage and price of cheese in each country? What is the total production of wine and cheese in each country?
(c) After trade, what is the total production of each good?
Definitions:
Available-for-Sale Securities
Financial assets that a company intends to sell but not immediately, recognized on the balance sheet at fair value.
Fair Value
The estimated market value of an asset or liability, reflecting the amount for which it could be exchanged in an orderly transaction between knowledgeable, willing parties.
Total Cost
The complete cost of producing or acquiring goods or services, including direct costs, indirect costs, and overheads.
Trading Securities
Financial assets held by a firm for the purpose of short-term gain and which can be sold in the public market.
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