1 . Comparative and absolute advantage

Rajiv and Simone are farmers. Each one owns a 20-hectare plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given hectare. Each farmer chooses whether to devote all hectares to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest.

	Barley	Alfalfa
(Bushels per hectare)	(Bushels per hectare)
Rajiv	20	5
Simone	50	10

On the following graph, use the blue line (circle symbol) to plot Rajiv's production possibilities curve (PPC), and use the purple line (diamond symbol) to plot Simone's PPC.

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