1.)

An economy consists of three workers: Clancy, Hubert, and Manuel. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Clancy can either mow 1 lawn or wash 1 car; Hubert can either mow 1 lawn or wash 2 cars; and Manuel can either mow 2 lawns or wash 1 car.

For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row.

Scenario	Lawns Mowed	Cars Washed
All three spend all their time mowing lawns. (A)
All three spend all their time washing cars. (B)
All three spend half their time on each activity. (C)
Clancy spends half his time on each activity, while Hubert only washes cars and Manuel only mows lawns. (D)

In the following table, identify the opportunity cost of washing cars for each worker.

Worker	Opportunity Cost of Washing Cars
Clancy
Hubert
Manuel

Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. Using the blue points (circle symbol), graph the production possibilities frontier (PPF) for this economy on the following graph. Then use the black point (plus symbol) to identify point A, the green point (triangle symbol) to identify point B, the orange point (square symbol) to identify point C, and the purple point (diamond symbol) to identify point D on the graph.

Markets for Goods and Services Firms Households Markets for Factors of Production