Q.1 Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. 1. Draw Maria’s production possibilities frontier for reading economics and sociology. 2. What is Maria’s opportunity cost of reading 100 pages of sociology? Q.2 1.Pat and Kris are roommates. They spend most of their time studying ( of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. (i) What is each roommates opportunity cost of making a pizza? (ii) Who has the absolute advantage in making pizza? (iii)Who has the comparative advantage in making pizza? (iv) If Pat and Kris trade foods with each other, who will trade away pizza in exchange of root beer?
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