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8) The figure above illustrates the production possibilities frontier for a country. This nation produces two main goods, compact cars and SUVs. (5 Marks) SUVs

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8) The figure above illustrates the production possibilities frontier for a country. This nation produces two main goods, compact cars and SUVs. (5 Marks) SUVs (millions per year) D C Compact cars (millions per year) What happens to the slope of the PPF as move from left to right along the curve? (1 Mark) b) What can you say about point E? (1 Mark) C) If the economy is currently producing 5 million compact cars, how many SUVs can it produce? (1 Mark) d) If the country is at combination C, what is the opportunity of producing another million compact cars? (1 Mark)| e) If the economy is currently at point D, what is the opportunity cost of moving to point A? (1 Mark)

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