Q.2. This table below shows the production possibilities for the United States. State the opportunity cost of moving from point a) B to C: b) D to E c) E to F d) F to D

Q.3. Figure below shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. What is the opportunity cost of moving from point B to C? Compact Disks (CDs) per Hour 180 120 60 T I 50 B 80 100 Cassettes per Hour

Using a production possibilities frontier (PPF) diagram, determine how does the PPF change in response to the events describe below. a) A relaxation of policies allowing more foreign direct investment into the country. b) Increasing the minimum wage level. c) A decrease in expenditure on research and development. d) An increase in the retirement age. e) Government policies supporting the provision of services, without affecting manufacturing.

Last quarter was very stressful because you had difficult classes. You decided to continue to work 10 hours a week and take 3 classes instead of 4, which results in only spending 20 hours a week on school.   Where are you producing relative to the Production Possibilities Frontier? (On, Below, or Above)    If the goal in economics is to be efficient in your allocation of scarce resources, in this case your time, are you operating at an efficient point?    What would you adjust in the future with respect to your hours at your job or the number of classes you take?