Assume that the country of Ecuador has a production possibilities curve (PPC) for the production of oil and bananas, two goods where Ecuador is a major exporter on the world market. Let's assume their PPC has oil on the vertical axis and bananas on the horizontal axis. Predict the effect of each individual event on the PPC of Ecuador by matching the event from the first list to the most likely effect (below, from the "Effect on Ecuador's PPC" list) on the next page. Note that it is possible to for different events to have the same effect (i.e. it's possible to have the same answer for more than one event). How does an increase in unemployment affect the PPC A. Movement from a point inside this PPC to a point that's on of Ecuador? the PPC, but no shift How would an earthquake which destroys the amount of B. Movement from a point that's on this PPC to a point inside available land, affecting both oil and banana production the PPC, but no shift within Ecuador, affect Ecuador's PPC? C. Movement between 2 points, up along the PPC (i.e. toward How does migration of laborers from Peru into Ecuador oil), but no shift affect Ecuador's PPC? D. Movement between 2 points, down along the PPC (i.e. How does increased demand for oil within Ecuador toward bananas), but no shift (during a period of full employment) affect the PPC of Ecuador? E. Increase (shift outward) in the PPC that affects both goods How does automation (technological change) within the F. Decrease (shift inward) in the PPC that affects both goods oil industry affect Ecuador's PPC? G. Increase (shift outward) in the PPC that affects only oil How does a decrease in the availability of inputs for H. Increase (shift outward) in the PPC that affects only bananas bananas affect Ecuador's PPC? 1. Decrease (shift inward) in the PPC that affects only oil How does an increase in demand for bananas, a change | Decrease (shift inward) in the PPC that affects only bananas that occurs during a period of full employment within Ecuador, affect the PPC of Ecuador? How does an increase in the overall capital stock within Ecuador affect their PPC? . v How does a decrease in the productivity associated with producing oil affect Ecuador's PPC