1. Sulawesi is producing two products namely rice andcorn using the existing level of resources and technology. Given these information, answer the following questions.

a)Draw a typical production possibilities curve that represents Sulawesi's production of rice and corn. Label the curve as A.

b) What are the assumptions used in deriving the production possibilities curve?

c) Describe two characteristics of the curve and explain the reasons for each characteristic.

d) What does the points inside the curve indicate?

e) Draw a new curve Bthat illustrates the results of the recent earthquake on the production of rice and corn. Explain your graph.

f) What would you expect the changes to the production possibilities curve be after international aid and assistance are given to Sulawesi by 2020? Draw a new graph indicating the changes from your new curve B(refer to question part e).