5. Scientists are convinced that the burning of fossil fuels is contributing to global climate change, which will harm future economic growth. They are calling for more resources to be devoted to the production of renewable energy. a. Construct a clearly labelled production possibilities frontier showing the potential tradeoff between fossil fuels and renewable energy. Put fossil fuels on the 'y' axis and renewable energy 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. What does mainstream economics assume happens to the opportunity cost of moving resources away from fossil fuel production into renewable energy production? What is the reason for this, and what implications does this have for the shape and slope of the PPF? (5 points) d. How would a mainstream economist explain why a society might choose to devote fewer resources to renewable energy? (5 points) e. What factors would a political economy perspective emphasize in explaining the choice to devote more resources to fossil fuels? (5 points) f. Many political economists point out that economies in the real world are not fully utilizing all available resources i.e. they are not producing at a point on the PPF. If this is true, what is the opportunity cost of devoting more resources to renewable energy? Explain clearly. (5 points)