CUET-PG 2023 Shift 1 Question 78: Theories of international trade

If $\frac{a_{LX}}{a_{LY}}$ and $\frac{a'_{LX}}{a'_{LY}}$ are the opportunity costs of producing X in terms of Y in countries A and B, and $\frac{p_X}{p_Y}$ is the international price ratio of X to Y. Both the countries will go for complete specialization when

1. $\frac{a_{LX}}{a_{LY}} < \frac{p_X}{p_Y} < \frac{a'_{LX}}{a'_{LY}}$
2. $\frac{a_{LX}}{a_{LY}} = \frac{p_X}{p_Y} < \frac{a'_{LX}}{a'_{LY}}$
3. $\frac{a'_{LX}}{a'_{LY}} = \frac{p_X}{p_Y} < \frac{a_{LX}}{a_{LY}}$
4. $\frac{p_X}{p_Y} < \frac{a'_{LX}}{a'_{LY}} < \frac{a_{LX}}{a_{LY}}$