Diagrams 1 and 2 below depict the production possibility frontier (PPF) for Rosie's Bakery. Answer the questions below and show all calculations where appropriate.

Diagram 1 Cakes 16 K 14+ 12+ M 8- PPF N 0 11 15 18 Sandwiches Diagram 2 Cakes PPF2 PPF 1 Sandwiches a. Explain in one paragraph how the PPF curve itself in Diagram 1 depicts the economic problem of scarcity for Rosie's Bakery. (5pt) b . Which points in Diagram 1 represent efficiency? Explain. (5pt) C. "Every point on the PPF in Diagram 1 involves a trade-off." Explain this by comparing a combination of related changes in values on the graph. (5pt)