Answer please

1. Consider a market of two farmers which are also consumers. The following table contains the maximum production levels over a time period of 8 hours for both wheat and wine. As usual, we assume linear production possibility frontiers. (8 points) Given their production and consumption before trade and the new production figures, find an example of trade which makes everybody better off and calculate the gains of trade for both Noah and Emma. Fill in the last two rows in the table. (4 points) Noah Emma Wheat Rice Wheat Rice Maximal Production 20kg 10kg 30kg 6kg Autarky 10kg 5kg 15kg 3kg Production 6kg 7kg 25kg 1kg Trade Gain Identify absolute and comparative advantages for each good. (2 points) Advantage Noah Emma Wheat Rice Wheat Rice Absolute Comparative Specialization in production is determined by what? (1 points) How does the comparative advantage change when calculated over 1 hour of production time? (1 points)