1. Consider a simple economy producing two goods: roses and chocolates. The following table shows all the combinations of goods that it can produce.

Production Possibilities Schedule for Rose and Chocolate Production

Point	Production of Roses	Production of Chocolates
A	65	0
B	60	50
C	50	90
D	35	120
E	15	140
F	0	150

1. Plot a graphical illustration of these combinations, with the production of roses on the y-axis.

1. Indicate on the graph with Point K where inefficient is.
2. Indicate on the graph with Point L where unattainable is.
3. Technological advancement increases the production of chocolate, draw the new production

possibilities curve. Label the curve, PPF2.