10marks

Question 63 (10 points) Production Possibility Frontier: Houses and Health Care Houses 1000 A B 950 C . G F Production Possibilities Frontier (PPF) 300 D 150 E 5000 6000 10000 11000 Health Care (Physician Visits) Consider the figure above and fill in the blanks below. IMPORTANT - ENTER THE OPTIONS IN RED FONT FOLLOWING EACH BLANK EXACTLY AND SHOWN. a) The statement "All production points on the above PPF are technically efficient." isConsider the figure above and fill in the blanks below. IMPORTANT - ENTER THE OPTIONS IN RED FONT FOLLOWING EACH BLANK EXACTLY AND SHOWN. a) The statement "All production points on the above PPF are technically efficient." is (true/false/uncertain) b) The point labelled F in the above PPF is technically (efficient/ inefficient/overutilized/infeasible) and the point labelled G is (feasible/infeasible) because that level of production would require A/ (more/less) resources than currently available. c) The opportunity cost of moving from Point D to Point B is(feasible/infeasible) because that level of production would require A (more/less) resources than currently available. c) The opportunity cost of moving from Point D to Point B is A (3000/4000/6000/10000) physician visits. d) Suppose consumers' get the highest value at Point D. Then we would consider Point D to be A (productively/allocationy/technically/feasibly) efficient