Consider a society consisting only of Helen, who allocates her time between sewing dresses and baking bread. Each hour she devotes to sewing dresses yields 4 dresses and each hour she devotes to baking bread yields 8 loaves of bread .Suppose that a sewing machine is introduced that enables Helen to sew 8 dresses per hour rather than only 4.a. If Helen works a total of 8 hours per day, show how this development shifts her production possibilities curve on the graph below.

b. Using the graph above, indicate if the following points are attainable and/or efficient before and after the introduction of the sewing machine.

i 16 dresses per day, 48 loaves per ? before the sewing machine and ? after its introduction

ii. 24 dresses per day, 16 lovaes per ? before the sewing machine and ? after its introduction

c. "An increase in productivity with respect to any one good increases our options for producing and consuming all other goods." Which of the following best explains the meaning of that statement?

A. Techinical improvements that increase the production of one good can almost always be used increase the production of the other goods.

B. Production possiblites curves are always are downward sloping

C . An increase in output per hour for any one good increase the output per hour of all other goods.

D. An increase in output per hour for any one good frees up resources that can be devoted to the production of other goods.