Suppose that a hypothetical economy which only produces food and clothing has the following production possibility schedule (table):

Point	Units of Food (millions)	Units of Clothing(thousands)
A	0	8.0
B	1	7.5
C	2	6.5
D	3	5.0
E	4	3.0
F	5	0.0

a. Graph the production possibility curve (PPC) with clothing on the vertical axis and food on the horizontal axis. Label the production points A through F.

b. What would be the opportunity cost of increasing production of food by 1 million if the economy was originally at Point A and moving to point B?

c. Suppose the economy is currently producing at Point D. What would be the opportunity cost associated with increasing production of food by 1 million units and moving to point E)?

d. Why are food costs increasing? That is, why is the opportunity cost of moving from D to E greater than the opportunity cost of moving from A to B?

e. On the same graph, label point U at the production of 3 thousand units of clothing and 3 million units of food. In addition, label point H at the production of 6 thousand units of clothing and 3.5 million units of food. What do points U and H indicate?

f. What is the difference between unemployed and inefficient use of economic resources?