1. Residents of the town of Smithfield like to consume hams, but each ham requires 25 people to produce it and takes a month. If the town has a total of 200 people, what is the maximum amount of ham the residents can consume in a month? 2. Complete the following sentences and explain: - Households primarily ____________ in the goods and services market. - Households primarily ____________ in the labor market. - Firms primarily ____________ in the goods and services market. - Firms primarily ____________ in the labor market. 3. Return to the example in Figure 2.4. Suppose there is an improvement in technology that enables more education with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? (draw a PPC before and after the technological improvement) 4. Marie has a weekly budget of $40, which she likes to spend on magazines and pies. a. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week? b. If the price of a pie is $8, what is the maximum number of pies