1. 40 pts) Both Canada and the United States produce lumber and footballs with constant opportunity costs (the slope of the PPF is constant). The United States can produce either 10 tons of lumber and no footballs, or 1,000 footballs and no lumber, or any combination in between. Canada can produce either 8 tons of lumber and no footballs, or 400 footballs and no lumber, or any combination in between.

1. (20 pts) Draw the U.S. and Canadian production possibility frontiers in two separate diagrams, with footballs on the horizontal axis and lumber on the vertical axis.