Assume that we have a "two-country; two-good" model (Country X and Country Y). Again assume that each worker in X can produce four cars or six shoes, but each worker
in Y can produce six cars or four shoes and each country has two workers.
a) Graph the Production Possibilities Frontier for X and Y. Please label and show all
details of the graph.
b) What is the autarky relative price of cars in X and Y?
c) What is the slope of PPF for each country? And what does these slopes represents?
d) Using the information provided above, in which good does X have a comparative
advantage, and in which good does Y have a comparative advantage? Why? Please
explain the reasoning of your answer
e) What should the relative price range be in order for trade to exist between these two
countries and why?
f. Now, assume the world relative price of cars is equal to one (Pc/Ps=1). In what good
will each country specializes? Briefly explain the reasoning of your answer.
g) Please graph the after-trade equilibrium for both countries. Please use accurate
labeling and briefly explain your answer.

Required information [the following information applies to the questions displayed below.] the following data is provided for garcon company and pepper company. garcon company pepper company beginning finished goods inventory $ 13,800 $ 18,850 beginning work in process inventory 16,700 20,700 beginning raw materials inventory 8,800 13,500 rental cost on factory equipment 28,250 26,650 direct labor 22,400 37,400 ending finished goods inventory 17,300 14,300 ending work in process inventory 23,200 19,400 ending raw materials inventory 5,900 9,600 factory utilities 11,250 15,000 factory supplies used 10,900 5,700 general and administrative expenses 32,500 44,500 indirect labor 2,500 9,880 repairs—factory equipment 4,820 2,150 raw materials purchases 41,500 63,000 selling expenses 54,800 49,000 sales 238,530 317,510 cash 33,000 23,700 factory equipment, net 222,500 124,825 accounts receivable, net 13,400 23,950 required: 1. complete the table to find the cost of goods manufactured for both garcon company and pepper company for the year ended december 31, 2017. 2. complete the table to calculate the cost of goods sold for both garcon company and pepper company for the year ended december 31, 2017.

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable