1. If fully trained and educated, Sarah and Nick can potentially produce according to the following table:

	"Units" of child-care production (with 0 repaired cars)	Number of repaired cars (with 0 units of childcare production
Sarah	4	8
Nick	6	6

a) Assuming an economy uses its resources efficiently, which person should specialize in the production of each good? How did you find your answer?

b) What are some potential barriers that could exist in this society that would cause your answer for part (a) to be less likely to occur? Name and explain at least 3.

2. On the planet Zilgor, two alien species live side-by-side ... the Gromules and the Palmenos. Although it is not true, in their society there is a stereotype that Gromules make the best Space Engineers. Give 3 reasons why the existence of this view, even though it isn't true, will perpetuate a system in which most Space Engineers will be Gromules.

3. If hiring decisions and pay were ONLY determined by differences in a person's education, experience, or training, would this mean that racial/gender discrimination in the the labor market no longer existed? Why/why not?