Use the following information to work Problems 1 to 3. Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. Suppose that Brazil€™s production possibilities for ethanol and food crops are as follows

a. Draw a graph of Brazil€™s PPF and explain how your graph illustrates scarcity.
b. If Brazil produces 40 barrels of ethanol a day, how much food must it produce to achieve production efficiency?
c. Why does Brazil face a tradeoff on its PPF?

Transcribed Image Text:

Ethanol 0 Food crops (tons per day) (barrels per day) 70 54 40