1.The following is a production possibilities schedule for health care and defence

AlternativeHealth careCrime prevention

A1500

B12020

C8040

D3060

E080

Graph the production possibilities curve.Then discuss the following:

What is the opportunity cost of the first 30 units of Health care? Of the first 20 units of crime prevention?

Add point F (40 units of crime prevention, 60 units of health care). What does it represent?

Add an additional point on the graph and discuss whether it is feasible in the current economy and why.

Why can't the economy produce 60 units of crime prevention and 80 units of health care?

If the economy grows and the curve shifts out in the future, could the economy produce 60 units of crime prevention and 80 units of health care?What might cause the economy to grow?