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Question: suppose there is a small village of two households household...

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Suppose there is a small village of two households. Household A can pick 5 ounces of wild berries in an hour or hunt 1 rabbit in an hour. Household B can pick 3 ounces of wild berries in an hour or hunt 2 rabbits in an hour. Assume they can hunt or gather berries for 10 hours a day. 7. Draw their PPF (on the same graph) for one 10 hour day. 8. Which household has the absolute advantage in picking berries and hunting rabbits? 9. Which household has the comparative advantage in picking berries and hunting rabbits? 10. Who will trade berries for rabbits and who will trade rabbits for berries? Why? Pause _ Soroll Lock F10 F11 F12 SysRq InsertHome Hum Lock Backspace Up
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