D Question 1 8 pts Based on the table below answer the following: Combinations of watches and tablets Points Watches Tablets A 16 0 B 12 C 8 2 D 4 3 E O 4 1. Draw a Production Possibilities Frontier (PPF) using the data from the table below (put watches in the vertical axis and tablets in the horizontal axis) showing all the points in the PPF. 2. What is the opportunity cost of an extra tablet when you are on segment AB? What about when you are at segment CD? (i.e., how many sweaters you have to give up in order to get an extra tablet? Show your work!) 3. What is your PPF's shape? Explain why your PPF has that shape based on your answer on (2) 4. Illustrate the effect of a new technology in the production of tablets only in this economy. Upload Choose a FileD Question 2 10 pts This is the market of tortilla chips, a normal good that is made by flour. Potato chips is a substitute, and salsa is a complement. Using the table below, answer the following: Demand and supply schedule of tortilla chips Price Quantity Demanded Quantity Supplied $1 35 15 $2 30 20 $3 25 25 $4 20 30 $5 15 35 $6 10 40 1. Draw a graphical illustration of this market and indicating the equilibrium price and the equilibrium quantity; Now, show graphically or explain by words what happens to supply or demand of nachos (it shifts to the right or to the left) and its equilibrium price and equilibrium quantity (increase or decrease) for each situation: 2. Consumer income decreases 3. The price of flour increases 4. The price of potato chips increases 5. The price of salsa decreasesD Question 3 5 pts When there is no intervention, the equilibrium quantity of labor is 4 and the equilibrium wage is $12. Suppose the government decides to impose a price floor in this labor market, as it thinks that a wage of $12 is too low. With the price floor, wages go up to $16, and because of that quantity supplied of labor increases to 5, whereas quantity demanded drops to 2.4. Wages Supply A $16 Price Floor B C $12 E D Demand 2.4 4 5 Quantity of Labor Based on the figure above match the surplus with the correct areas:B C $12 E D Demand 2.4 4 5 Quantity of Labor Based on the figure above match the surplus with the correct areas: Consumer surplus before price floor [ Choose ] B, D D, E Producer surplus before price floor A, B, C A, B, D C, E Consumer surplus after price floor A B. C Producer surplus after price floor [Choose ] Deadweight loss after price floor [ Choose ]D Question 4 8 pts Suppose there are only 3 goods in the consumer basket. Based on the following table, answer the following: Price and quantity for consumer's basket Goods Quantity Price 2019 Pricezo20 Price2021 milk 57 cartons $3/carton $3.25 $4 cereal 30 boxes $2.50/box $3.10 $3.90 honey 12 bottles $1/month $1.50 $2 . Calculate the cost of the market basket for all years. . Consider 2019 as the Base Year and compute the Consumer Price Index (CPI) for each year. . Use the CPI to calculate the inflation rate for 2021 Upload Choose a FileD Question 5 6 pts The table below shows the U.S. employment and unemployment date for 2017: U.S.'s employment and unemployment Total adult population over the age of 254.082 16 million In the labor force 152.081 Employed million Unemployed 7.635 million Out of the labor force b . Find the values for a (in the labor force), and b (out of the labor force), show your work! . Calculate the U.S's unemployment rate and labor force participation rate. Remember to show your work, if you provide only the final answer, you won't get full credit! Edit View Insert Format Tools Table 12pt w Paragraph B IYA LV TVD Question 6 8 pts Complete the table below finding the values for real GDP and real GDP per capita (show your work for at least one year), and answer the following: Real GDP and Real GDP per capita nominal GDP population Year GDP deflator real GDP per real GDP (in billion) (in million) capita 1990 5,979.6 72.7 248.709 1995 7.664.0 81.7 266.278 2000 10.289.7 89.0 282.296 2005 13.095.4 100 296.115 Which year is the base year? Justify your answer! . Calculate the real GDP per capita growth from 1990 to 2005. Show your work! Upload Choose a File