Please answer all:

1. (10 points) Terry can clean the kitchen in 60 minutes and complete a switch game in 1.5 hours (90 minutes). Cathy can clean the kitchen in 45 minutes and completes a switch game in 1 hour. In which good does Terry have a comparative advantage? Explain and Show All Work. 2. (10 points) Assuming increasing opportunity costs. draw a diagram that shows how a country can consume outside of its PPF by engaging in trade. Be sure to indicate the production and consumption points for this country, Be sure to indicate the amount of exports and imports for this country. 3. (10 points) Assuming the following schedule for a country able to produce pasta and coffee: 3. Draw the PPF next to the above schedule. labeling everything b. What is the opportunity cost of the 11'\" unit of Pasta? Show all work. c. What is the opportunity cost of the 115m unit of Coffee? Show all work. (35 points) Assume that the US and Canada are able to produce food and clothing using the following amounts of labor: _c-aa _ Clothing 20 labor hours 15 labor hours a. (6 points) What are the autarky relative prices in the US and Canada? Explain your answer. b. (6 points) Which country has a comparative advantage in food? In clothing? Explain your answer. c. (2 points) Which country has an absolute advantage in food? In clothing? Explain your answer. Assume that Canada has 400 labor hours and the US has 300. d. (14 points) Draw the PPF for each country. assuming constant opportunity costs. e. (4 points) Assume that each country produces 10 Clothing in Autarky. How much food does each country produce in Autarky? Explain your answer. Label the autarky production points CA and USA, respectively, on your PPFs drawn above in part d. f. (3 points) Assume each country specializes completely in the good in which it has a comparative advantage. Label the post-trade production points CT and UST, respectively, on your PPFs drawn in part d. Calculate the gains from specialization and exchange