1 Using the data presented in table below answers the followings ;

a) which country has comparative advantage in the production of apples,oranges? Explain and show work.

b) which country has an absolute advantage in the production of apples,oranges? Explain.

c) which country should specialize in the production of apples, oranges? Explain why.

Production per worker;

Apples Oranges

US 100 200

Mexico 450 150

2 During the time of a pandemic and the existence of a highly contagious corona-virus, many scientists recommend wearing a mask. Let's assume that wearing a mask can limit the spread of the virus. Is wearing a mask an externality? Positive or negative? How about not wearing a mask? Explain your answer.