combination cotton wheat 1000 0 900 100 M O O UD 700 200 400 300 0 400PART B Analysis and Application (Questions answer ALL question (40 marks) 1. The table below is a list of the maximum combinations of cotton and wheat that the island of m can produce. combination cotton wheat A 1000 0 B 900 100 C 700 200 D 400 300 E 0 400 (i) (ii) (iii) Draw the production possibility frontier (PPF) for the island of W (5 marks) Explain whata point on the line shows (for example point A or B, etc). Full answer required. (2 marks) Assume the economy starts at point D and moves to point B. Explain what is happening here. Calculate the opportunity cost. (3 marks) 2. Use the data in the table above to answer the following questions. (i) (ii) (iii) Currently, there are 300 units of cotton and 200 units of wheat produced in country A. Show this combination on a diagram. What would you say about this combination? (3 marks) An economist argues that they could produce 700 units of cotton and 500 units of wheat. How would you respond to this claim? (4 marks) Which is the best combination of production? (Hint: your answer should refer to productive efciency and allocative efciency)