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Efficiency in the production possibilities modelSuppose Argentina produces only two goods: corn and cars. The following graph shows Argentina'scurrent production possibilities frontier, along with six output combinations represented by blackpoints (plus symbols) labelled A to F.Ans:A- FeasibleB- InfeasibleC- FeasibleD - InefficientE - EfficientF- EfficientShifts in production possibilitiesSuppose France produces two types of goods: agricultural and capital. The following diagram shows itscurrent production possibilities frontier for barley, an agricultural good, and locomotives, a capitalgood.Drag the production possibilities frontier (PPF) on the graph to show the effects of an immigration lawthat results in fewer workers entering the country.Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one orboth endpoints to the desired position. Points will snap into position, so if you try to move a point andit snaps back to its original position, just drag it a little farther.Draw ppfOpportunity cost and production possibilitiesSimone is a skilled toy maker who is able to produce both trains and kites. She has 8 hours a day toproduce toys. The following table shows the daily output resulting from various possible combinationsof her time.ChoiceHours Producing(Trains) (Kites)Produced(Trains) (Kites)A8040B6238C44214D26116E08017On the following graph, use t ...


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