Questions:

1. Draw the production possibilities frontier on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis.

Annual Production of X	Annual Production of Y
0	1300
20	1200
45	900
60	600
70	350
75	0

1. If the economy is producing 60 units of X and 600 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.

1. If the economy is producing 70 units of X and 350 units of Y, what is the opportunity cost of producing an extra 5 units of X. Show on graph.

1. If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.