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Question 1 [30 points] Two Canadian workers, Marc and Rebecca, can each produce stoves or apples. Marc can produce either 60 pounds of apples or

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Question 1 [30 points] Two Canadian workers, Marc and Rebecca, can each produce stoves or apples. Marc can produce either 60 pounds of apples or 1 stove per month. Rebecca can produce either 140 pounds of apples or 1 stove per month. Note: Please be sure to be as accurate as possible and to round your answers to two decimal places. When plotting lines on the graph, select which line you want to plot from the drop down menu at the top of the graph. a) Plot Canada's production possibilities curve by plotting at least 3 points on the curve. Select which item you want to graph from the drop down menu at the top of the graph to manipulate that item. Consumption at World Price of 1 stove for 175 pounds of apples Canada's Production Possibilities Curve Consumption at World Price of 1 stove for 70 pounds of apples Consumption at World Price of 1 stove for 175 pounds of apples 360- Apples (pounds) 120 80C1 40 0.5 1.5 2 2.5 Reset Stovesb} How much of each good is produced if each worker specializes according to comparative advantage? Stoves = D Apples = D E Answer c) - e] assuming that world prices are such that 1 stove trades for 70 pounds of apples on lntematlonal markets. 0) If Canada is open to trade. show Canada's consumption possibilities on the graph above by plotting at least 2 points on the curve. Select which item you want to graph from the drop down menu at the top of the graph to manipulate that item. d} What is the most of each good that Canadians can consume when the economy is open? Stoves = D Apples = D E c} How much more can Canadians consume when the economy is open as opposed to when it is closed? Stoves = D Apples = D E Answer f] - h} assuming that world prlces are such that 1 stove trades for 175 pounds of apples on lntematlonal markets. I) If Canada is open to trade, show Canada's consumption possibilities on the graph above by plotting at least 2 points on the curve. Select which item you want to graph from the drop down menu at the top of the graph to manipulate that item. 9} What is the most of each good that Canadians can consume when the economy is open? Stoves = D Apples = D E h} How much more can Canadians consume when the economy is open as opposed to when it is closed? Stoves = D Apples = D E

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