Problem 1 (6 points) A production possibilities table for two products, grain and airplanes, is found below. Usual assumptions regarding production possibilities are implied. Combination" ' G " us i (tans) (units) A 0 7 B 14 6 C 26 5 D 36 4 E 44 3 F 50 2 G 54 1 H 56 D (2 points) construct (draw the PPF graph) a production possibilities frontier curve from this information placing grain on the vertical axis and airplanes on the horizontal axis. If the economy is at D, what is the opportunity cost of one more tone of grain? Of one more airplane? (2 points) why does the additional production of airplanes cause a greater tradeoff along each point on the production possibilities curve? Explain why there is increasing opportunity costs. what would happen in each of the following situations (using and draw a separate graph for each situation): (a) (0.5 points) The population becomes more educated (including in grain and airplane industry) over time as the number of high school dropouts falls and the number of college graduates rises. (b) (0.5 points) The unemployment rate declines from 8 to 6 percent of the labour force. (c) (0.5 points) Businesses and government are unable to solve a major computer problem, thus reducing economic efficiency and national output. (d) (0.5 points) Advances in telecommunications and new technology significantly contribute to economic growth over time in airplane industry but not for grains