Explain how each event affects production possibilities.

1. The population becomes more educated over time as the number of high school dropouts falls and the number of university graduates rises.
2. The unemployment rate declines from 7.3 to 4.5 percent of the labour force.
3. Businesses and government are unable to solve a major computer problem, thus reducing economic efficiency and national output.
4. The government decides to allocate more resources to national defence.
5. A nation participates in international trade with other nations of the world.