5. During the COVID pandemic, many people became concerned that their societies were not devoting enough resources to the production of care (a non-market good). They are calling for more resources to be devoted to providing care for children, for the elderly and for other dependent groups.

a. Construct a clearly labelled production possibilities frontier showing the potential tradeoff between care and market goods (goods and services that are produced for sale in the market). Put non-market care on the 'y' axis and market goods on the 'x' axis. Clearly label points of productive efficiency, inefficiency as well as unattainable resource allocations. (2 points)

b. State the assumptions underlying the PPF that you have drawn. (3 points)

c. How would a mainstream economist explain why a society might choose to devote fewer resources to care and more resources to market goods? (5 points)

d. What factors would a political economy perspective emphasize in explaining the choice of a society to devote fewer resources to care and more resources to market goods? (6 points)

e. Many political economists point out that economies in the real world are not fully utilizing all available resources i.e. there are unemployed resources. If this is true, what is the opportunity cost to society of devoting more resources to care? Explain clearly.