Pat and Chris can spend their nonleisure time working either in the marketplace or at home  (preparing dinner, taking care of children, doing repairs). In the marketplace, Pat earns a higher wage, wp= $20, than Chris, wc= $10. a. Show their combined budget constraint and identify who has the comparative in working in  the marketplace and who has a comparative advantage in working at home. b. Discuss how living together can affect how much each of them works in the marketplace. Can you think of a shock that would significantly affect their choices? Briefly explain the shock and its effects. Illustrate your answer with a numerical example different from the textbook solution.

Elijah and Aneesha are farmers. Each one owns a 14-acre plot of land. The following table shows the amount of maize and squash each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the land and squash on the rest. Elijah Aneesha SQUASH (Pounds) 140 On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. 126 112 98 84 70 42 28 14 0 Maize (Pounds per acre) 10 18 0 Squash (Pounds per acre) 6 70 140 210 280 350 420 490 560 630 MAIZE (Pounds) 700 Elijah's opportunity cost of producing 1 pound of squash is squash is pounds of maize. Because Elijah has a comparative advantage in the production of squash, and Elijah's PPF Aneesha's PPF (?) Aneesha has an absolute advantage in the production of maize, and Aneesha has an absolute advantage in the production of squash. 2…

Homework (Ch 02) 4. Shifts in production possibilities Suppose Ireland produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and airplanes, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of an immigration law that results in fewer workers entering the country. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. (? 540 450 PPF 360 270 180 90 PPF 300 400 500 600 100 200 CORN (Millions of bushels) AIRPLANES (Thousands)

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The budget constraint model and the production possibilities frontier (PPF) model both illustrate (select ALL that apply): O allocative efficiency O productive effieciency O a curved line to represent both the budget constraint and the PPF the tradeoffs in choosing more of one good at the cost of less of the other O comparative advantage O constraints on what we can have due to scarce resources

The four people listed below are the only workers in an economy that works 10 hours per day and only produces two products. Use the table below and the questlons below to construct a PPF that displays the maximum efficlent production. Basketballs Per Hour Apple Pies Per Hour LeBron 1 Anthony Rajon Alex 3 X-axis - ples Y-axis - basketballs Point (110, 70) lies on the PPF. Use it along with the intercepts and the answer the Question 4 to plot the PPF curve. Then, locate the polnt (90, 100). What is true about that point's location, relative to the PPF? It lies to the left of the PPF, which means that the economy is operating at less than peak efficiency. It also lies on the PPF, which means that this is a possible combination of basketballs and apple pies that can be achieved with this current configuration of the economy. It lies to the right of the PPF, which means that the economy needs to grow in order to produce this combination of basketballs and apple pies. O b 4 4 623

The term "figure skating" refers to the shapes that skaters used to trace in the ice as part of skating competitions. In the 1970s, this aspect of the sport was deemphasized and eventually eliminated. Use the theory of comparative advantage to show why eliminating this part of the competition has led skaters to perform much more difficult and sophisticated jumps and spins. TERM

The graph shows the Production Possibility Frontiers of Writ (orange, dotted line) and Greg (green, solid line) when they gather pumpkins or branches individually. Drag and drop the points A, B and C to form the Production Possibility Frontier when Wirt and Greg specialize and exchange the production of branches and pumpkins. Note: Use the circle in the top, left corner of the textbox as the point. Drab Point A as the top left point. Drag Point B to the point at which the joint PPF changes slope. Drag Point C to the bottom right point. Total Branches 6 5 4 3 2 1 O 0 1 2 3 4 5 6 Point A Point B Point C Greg's PPF Wirt's PPF Total Pumpkins

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On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF.     Nick and Rosa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest.   Corn Rye     Nick 12 3 Rosa 15 5     (ROSA OR NICK)  has an absolute advantage in the production of corn, and  (ROSA OR NICK)  has an absolute advantage in the production of rye.   Nick's opportunity cost of producing 1 bushel of rye is__________bushels of corn, whereas Rosa's opportunity cost of producing 1 bushel of rye is_________ bushels of corn. Because Nick has a(HIGHER OR LOWER)    opportunity cost of producing rye than Rosa, (NICK OR ROSA)   has a comparative advantage in the…