1. Production Possibilities The following production possibilities table data represent the amount of consumer goods and capital goods produced in the United States in a given day.

Option Consumer Goods Capital Goods A 44000 0 B 40000 2000 C 32000 4000 D 20000 6000 E 0 8000

a. Plot the above options as a production possibilities curve, placing capital goods on the x-axis and consumer goods on the y-axis. b. What is the value for the y-intercept on this graph? c. State the four assumptions that the table and curve are based upon. d. Solve for the slope between each point, or option, on the graph, specifically going from Option A to B, Option B to C, Option C to D and Option D to E. e. Between options B and C, what is the cost of one more capital good? f. Between options B and C, what is the cost of one more consumer good? g. Does the Law of Increasing Opportunity Costs hold in this example? Explain why it does or does not hold in this specific example. h. Show a point of inefficiency on your graph. Label this as I. i. Show a point that is currently unattainable on your graph. Label this as U. j. Explain how a firm, in the future, can reach a point that is currently unattainable.

2. Statement Identification (10 points) Given the following two statements, identify which one is a positive economic statement and which one is a normative economic statement. i) China's economic growth fell to its second lowest level in at least four decades last year. ii) China's economic growth will rebound and be stronger in 2023.

3. What is your personal opportunity cost of doing this assignment? (5 points)