Puerto Rico is a young nation located in the Caribbean. For almost a century has been a colony of the United States and has enjoyed years of progress economic and social. However, in recent years Puerto Ricans have noticed the deterioration of their school system and have decided to initiate a reform educational, for which it is required, among other things, to increase the production of teaching materials. The following is the set of production possibilities of Puerto Rico, which shows the combination of possible production between teaching materials and consumer goods.

What can we say about the production mix represented by point H ?, and the one represented by point G? Teaching Materials Consumer goods 0 1 2 3 4 5 2

b. What is the opportunity cost of increasing the production of teaching materials of 2 to 3 units?

c. What is the opportunity cost of increasing the production of 4 to 5 unit teaching materials?

d. Is the law of increasing opportunity cost observed in Puerto Rico? Explain briefly. and. The governor of Puerto Rico, in a speech on the need for educational reform, he said recently that, 'If we want our children have more school supplies, we can not continue spending so much in Plaza Las Amricas '(Plaza Las Amricas is the most large of Puerto Rico). What did the governor mean?

Conjunto de Posibilidades de Produccion para Puerto Rico A B C D E 12- . G . H Bienes de Consumo F 2 3 Materiales de Enschanza