1)Describe how each of the following would affect the U.S. production possibilities frontier: (a) an increase in the number of illegal immigrants entering the country, (b) a war that takes place on your country's soil, (c) the discovery of a new oil field, (d) a decrease in the unemployment rate, and (e) a law that requires individuals to enter lines of work for which they are not suited.

2)"A nation may be able to live beyond its means, but the world cannot." Do you agree or disagree? Explain your answer.

3)Are all exchanges or trades beneficial to both parties in the ex post position? Explain your answer.

4)If the slope of the production possibilities frontier is the same between any two points, what does this simply about costs? Explain your answer.

5)A person who benefits from a trade can be disgruntled over the terms of trade. Do you agree or disagree? Explain your answer.

6)Explain how to drive a production possibilities frontier. For instance, how is the extreme point on the vertical axis identified? How is the extreme point on the horizontal axis identified?

7)Suppose a nation's PPF shifts inward as its population grows. What happens, on average, to the material standard of living of the people? Explain your answer.