a. Describe the economic concepts represented in the production possibilities model? (8 marks)

b. Summarize your answer "If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed or misallocated resources in Mexico." Is this statement true or false?(5 marks)

c. Explain briefly "If Mexico is currently operating at a point inside its production possibilities frontier, then there are unemployed or misallocated resources in Mexico." Is this statement true or false?(5 marks)

d. Interpret what does the vertical intercept of a production possibilities frontier represent?

(2 marks)