RYE Bushels) On the following graph, use the blue line (circle symbol) to plot Jacques's production possibilities curve (PPC) and use the purple line (diamond symbol) to plot Kyoko's PPC. Then, use the graph to answer the questions that follow. 100 96 14 72 60 41 * 24 12 Jacques Kyoko D Corn Rye (Bushels per acre) (Bushels per acre) 40 8 28 7 D 40 120 180 240 300 300 420 480 540 600 CORN (Bushels) 10 Jacques's PPC Kyoko's PPC ?

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Chapter1: Making Economics Decisions
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1. Comparative and absolute advantage
Jacques and Kyoko are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce
per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce com on some of the land and rye on
the rest.
RYE (Bushels)
120
On the following graph, use the blue line (circle symbol) to plot Jacques's production possibilities curve (PPC) and use the purple line (diamond
symbol) to plot Kyoko's PPC. Then, use the graph to answer the questions that follow.
M
14
72
8
60
48
36
Jacques
Kyoko
24
12
0
Corn
(Bushels per acre)
40
28
0
Rye
(Bushels per acre)
60 120
180 240 300 300 420 460 540 600
CORN (Bushels)
Jacques's PPC
Kyoko's PPC
Transcribed Image Text:1. Comparative and absolute advantage Jacques and Kyoko are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce com on some of the land and rye on the rest. RYE (Bushels) 120 On the following graph, use the blue line (circle symbol) to plot Jacques's production possibilities curve (PPC) and use the purple line (diamond symbol) to plot Kyoko's PPC. Then, use the graph to answer the questions that follow. M 14 72 8 60 48 36 Jacques Kyoko 24 12 0 Corn (Bushels per acre) 40 28 0 Rye (Bushels per acre) 60 120 180 240 300 300 420 460 540 600 CORN (Bushels) Jacques's PPC Kyoko's PPC
has an absolute advantage in the production of corn, and
has an absolute advantage in the production of rye.
Jacques's opportunity cost of producing 1 bushel of rye is
bushels of corn. Because Jacques has a
advantage in the production of rye, and
bushels of corn, whereas Kyoko's opportunity cost of producing 1 bushel of rye is
opportunity cost of producing rye than Kyoko,
has a comparative
has a comparative advantage in the production of corn,
Transcribed Image Text:has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Jacques's opportunity cost of producing 1 bushel of rye is bushels of corn. Because Jacques has a advantage in the production of rye, and bushels of corn, whereas Kyoko's opportunity cost of producing 1 bushel of rye is opportunity cost of producing rye than Kyoko, has a comparative has a comparative advantage in the production of corn,
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