QUESTIONS 7-12. The diagram below illustrates the production possibilities frontiers for land in the Santa Clara valley with regard to growing peaches and plums under different sets of circumstances, A,B,C,D, and E. Start with A in each case. Which curve (A,B,C,D, or E ) best illustrates each set of circumstances? Each option (A, B, C, D, E) may be used once or more than once in answer to these six questions. 7. Devastating fires destroy both peach and plum orchards in the South Bay. 8. Global warming lengthens the growing season for all sorts of fruit. 9. Someone invents an improved technology for harvesting peaches. 10. A virulent disease wipes out many but not all plum trees. 11. Consumer preferences shift from peaches to plums (be careful!). 12. Consumer preferences shift from plums to peaches (be careful!). QUESTIONS 13-15 test your understanding of international specialization and trade. 13. International specialization and trade enable a country's population to produce beyond that country's domestic production possibilities frontier. ABtruefalse 14. International specialization and trade enable a country's population to consume beyond that country's domestic production possibilities frontier. A true B false International specialization and trade may be explained with reference to (choose one or both) A a difference in comparative advantage between countries. B the existence of increasing returns. ESTIONS 16-17 test your understanding of comparative advantage. In an hour Amy can pick either two baskets of apples or three baskets of grapes. And in an hour Bob can pick either one basket of apples or one basket of grapes. Both Amy and Bob consume apples and grapes. Choose the correct statement below. A. Although Amy is faster than Bob in picking apples and picking grapes, there is scope for specialization and exchange. B Since Amy is faster than Bob in picking apples and picking grapes, there can never be any scope for specialization and exchange