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Suppose the fictional country of Rainier produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for rice,

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Suppose the fictional country of Rainier produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for rice, an agricultural good, and electric scooters, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. 120 100 PPF 80 60 ELECTRIC SCOOTERS (Thousands) 40 20 PPF BO 120 180 240 300 380 RICE (Millions of bushels)

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