Singapore produces a variety of products including chicken and ketchup. If we assume it has a total of 80,000 labour hours per week to produce chicken and ketchup, answer the following questions. Further assume that one tonne of chicken requires 40hrs and one gallon of ketchup requires 50hrs. 1. The following table represents possible production combinations, and output. Fill in the blanks. Combinations Employment of Labour

Hours

Production Chicken Ketchup Chicken Ketchup

A 80,000 B 400 C 1,200 200 D 40,000 E 65,000 F 1,800 500 G 80,000

2. Construct Singapore's PPF. Label all combinations. (6 marks) 3. Calculate the Opportunity Cost in the following questions using either the ratio method or the gradient method where appropriate. Further, explain what the answer means in words. (12 marks) a. Calculate the opportunity cost for chicken if the country moves from point A to B. b. Calculate the opportunity cost for chicken if the country moves from point B to C. c. Calculate the opportunity cost for chicken if the country moves from point E to G. d. Calculate the opportunity cost for BOTH chicken and ketchup at point D.

4. Suppose Singapore gains new technology that reduces the required hours per unit