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Write out your answers to the six questions below. Once you are condent in your answers, go to the HONIEWORK 2 link in Module 2

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Write out your answers to the six questions below. Once you are condent in your answers, go to the HONIEWORK 2 link in Module 2 and answer the multiple choice questions. Alter you submit the quiz, you will be able to immediately review your results. If you have any questions incorrect, you have two more attempts to retake the homework quiz and correct your answers. Don't forget to keep track of any right and wrong answers as you go along. The gure below shows the production possibilities frontier for a country that produces two goods, wheat and trucks. Use this Figure to answer the following question(s). 1. If the economy is currently at point D. What is the opportunity cost of producing an additional 100 trucks? 2. Suppose the economy is producing ISO tons of wheat and 200 trucks. Does this imply the economy is operating efficiently, the economy is not producing as much as it could, the demand for trucks is low, or that economic growth would help the economy move to its production possibilities frontier? 3. What does the bowed out shape of the production possibilities frontier demonstrate? goods, wheat and trucks. Use this Figure to answer the folloWing questionis). 1. If the economy is currently at point D. What is the opportunity cost of producing an additional 100 trucks? 2. Suppose the economy is producing 180 tons of wheat and 200 trucks. Does this imply the economy is operating efciently, the economy is not producing as much as it could, the demand for trucks is low, or that economic growth would help the economy move to its production possibilities 'ontier? 3. What does the bowed out shape of the production possibilities frontier demonstrate? 4. What could explain the rationale for choosing to produce at point C over point D? 5. What is the effect on the PPF or the economy's position on the PPF of a recession which increases unemployment nationwide? 6. What is the effect on the PPF or the economy's position on the PPF if a new machine to harvest wheat more efciently were invented

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