Countries face trade-offs between producing consumer goods and producing capital goods.

A. Country X takes one hour to produce a unit of consumer goods and two hours to produce a unit of capital goods. Country Y takes two hours to produce a unit of consumer goods and four hours to produce a unit of capital goods. Which country has a comparative advantage in the production of consumer goods? Explain.

The following table shows labor-market data for Country X.

B Calculate the unemployment rate in Country X.Show your work.

C. Calculate the labor force participation rate in Country X.Show your work.

D. Draw a correctly labeled graph of the production possibilities curve for Country X, with consumer goods on the horizontal axis and capital goods on the vertical axis. Indicate a point on your graph, labeled Z, that reflects the current level of unemployment.

The text box below should be used for notes only and not your final response.