Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has 30 workers and the United Kingdom has 20 workers.

• Draw the PPF for the United States.
• Suppose the international relative price of a ton of steel is 2.5. Draw the world price line.
• Show that the United States is better off under trade compared to Autarky with the aid of indifference curves.
• Show the amount the United States will export and import.
• What would be the real wage of the workers in the two countries?