@ 100% AT&T 9:08 AM X HW 1.pdf 1 of 4 ECON 201 HOMEWORK i Fall 2019 Due Sept. 26, 2019 CHAPTERS 1,2,3,4 I. Production Possibilities For each of the following situations, show how you would represent the production production possibilities change experienced by the country. Start out by drawing a PPF for the country with agricultural goods in the horizontal axis and manufactured goods axis and with the assumption that resources are not identical in production. or on the vertical a) Show how you would represent the impact Hurricane Dorian had on the Jacksonville area. Explain briefly why you believe your picture changes in the way you illustrated. b) Show the effect that a changes in the way you illustrated c) Economic statistics indicate that unemployment in Spain has risen from 8.6% in the first quarter of 2018 to 25.02% in the fourth quarter of 2018. Show how you would represent the impact of this dramatic increase in unemployment in Spain. Explain briefly why you believe your picture changes in the way you illustrated d) Congress is currently considering a new immigration policy that would allow people with the entrepreneurial skills and the money to start new businesses permission to emigrate to the U.S. if they start a business in this country that employs at least 5 U.S. workers. Show how you would represent the impact of this policy on the U.S. Explain briefly why you believe your picture changes in the way you illustrated prolonged drought. Explain briefly why you believe your picture II. Gains from Trade Suppose the following table provides the production possibilities for the only two countries in the world. These two countries can produce only these two goods. Assume resources are identical in production. Use this information to show how trade benefits the world and the two individual countries. Also assume the countries are able to produce with no idle resources and production mistakes no Diamond Silver Australia 180 270 Canada 90 180 a) Illustrate the production possibilities for these two countries by drawing their PPF, with silver measured on the horizontal axis and diamonds measured on the vertical axis. (Make sure you use a ruler to draw PPFS) b) Assuming these two countries decide to remain self-sufficient and not engage in trade with each other, illustrate the consumption possibilities for these two countries by drawing their CPF. How were you able to determine the CPF8? 1 c) Show the actual production levels of each country assuming the countries are self-sufficient