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Question

1) Suppose we have an agrarian economy that can utilize all its resources to produce either

computer chips or wheat. Below is a table of possible combinations of both goods that can

be produced if they are using their resources efficiently.

a) Draw this country's PPF with computers on X-Axis

b) Label the parts of the graph that are "Unattainable", "Efficient", and Inefficient".

c) What is the opportunity cost for this country to go from producing combination E to

producing combination D? What about from B to A.

Fig: 1