1. A small country produces only two goods, cars and computers. Given its limited resources, this country has the following production possibilities:

Cars                             Computers

0                                  200

25                                180

50                                130

75                                70

100                              0

1. Draw the PPF.
2. Suppose car production uses mainly machines (capital) and computer production uses mainly labor. Show what happens to the PPF when the amount of capital increases but labor remains unchanged.