assignment questions

1. In the space provided below draw the production possibilities frontier (PPF) for the following:

1. (2p) Draw the PPF. Label everything (axes, quantities, points A - G, PPF1).

2. (2p) The opportunity cost of producing the first 30 apples  = ____ units of (good) _________ and we are moving __________(upward/downward) along the PPF from point ____ to point ____.

3. (2p) The opportunity cost of producing the first 10 oranges  = ____ units of (good) __________ and we are moving ____________(upward/downward) along the PPF from point ____ to point ____.

4. (2p) The opportunity cost of moving from point D to point C is the opportunity cost of producing ____ more units of good ____ and it is (measured as) equal to ____ units of good ____.

5. (2p) New technology is invented that benefits only the production of oranges. Show the new PPF after the new technology is introduced. Label it PPF2.