1. Maria can read 20 pages of economics in an hour. He can also read 50 pages of sociology in an hour. She spends 5 hours a day studying.• Draws Maria's production possibilities frontier by reading economics and sociology. If Maria dedicates 5 hours to studying economics, she can read 100 pages. If he spends five hours studying sociology, he can read 250 pages. Time costs are constant and the production possibilities frontier is a straight line. • What is Mary's opportunity cost of reading 100 pages of sociology? It takes Maria two hours to read 100 pages of sociology. Maria in that period could read 40 pages of economics.3. Pat and Kris are roommates. They spend most of their time studying (obviously), but leave some time for their favorite activities: making pizza and brewing root beer. It takes Pat 4 hours to make a gallon of root beer and 2 hours to make a pizza. It takes Kris 6 hours to make a gallon of root beer and 4 hours to make a pizza. • What is each roommate's opportunity cost of making a pizza? Who has the absolute advantage in making pizza? Who has the comparative advantage in making pizza? Pat's opportunity cost of making a pizza is 1/2 liter of root beer, since he could prepare 1/2 liter in 2 hours to make a pizza. Pat has an absolute advantage in making pizza as he can make one in two hours, while Kris takes four hours. Kris's opportunity cost of making a pizza is 2/3 gallon of root beer, since she could make 2/3 of a gallon in the time (4 hours) it takes to make a pizza. Pat's opportunity cost of making pizza is lower than Kris's; Pat has a comparative advantage in making pizza. • If Pat and Kris trade food, who will trade pizza for root beer?…half the paper…nothing compared to Bill's only clothing unit has the comparative advantage in producing food. Hillary has the comparative advantage of producing clothing. • Draw the production possibilities frontier for the family (i.e. Bill and Hillary together) assuming that each spends the same number of hours each day as the other producing food and clothing. • Hillary suggests: instead, that she specializes in making clothes. That is, it will take care of all the production of clothing for the family; however, if she devotes all her time to clothing and they want even more, then Bill can help her with clothing production. What does the frontier of family production possibilities look like now? Hillary will spend all her time making clothes and Bill will have to stop producing food, which will decrease his productivity to help Hillary with clothes.