1. What are three reasons to study economics?
2. During the Second World War, Germany's factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany's production possibilities curve?
3. In the power point discussion of production possibilities curves I suggested we all live beyond our own production possibilities? Give an example of this from your own life and explain how this is possible.
4. The table below shows the production possibilities for the countries of Tweedle Dum and Tweedle Dee. Determine comparative advantage for each country and the limits to the terms of trade?

Tweedle Dum Tweedle Dee complete specialization - complete specialization - max output max output Dr Pepper 10,000 2,000 Moon Pies 1,000 500