Production Alternatives
Products A B C D E
wheat(millions tons) 0 40 70 90 100
missiles 4 3 2 1 0

a.) Graph the data above. Put wheat on the vertical axis and missiles on the horizontal axis.
b.) If you are at point A, how much wheat can be gained from giving up 1 missile?
c.) If you are at point D, how much wheat can be gained from giving up 1 missile?
d.) Why are the answers to b and c above different, i.e. why is the graph curved outward (concave)?
e.) Suppose a new technology was increasing the efficiency of wheat production, with no application to missile production. Illustrate on the above graph how we would represent this change in production possibilities.
f.) Suppose that a drought resulted in a 50% reduction in wheat output. Redraw the original Production Possibilities Frontier graph and illustrate how this change would be represented.
g.) Suppose a "baby-boom" generation comes of working age all at one time and work equally well in wheat production and missile production. Redraw the original Production Possibility Frontier graph and illustrate how this change would be represented.
h.) Suppose this society enters a war. Workers are pulled out of producing wheat and instead are used to produce guns. Redraw the original Production Possibility Frontier graph and illustrate how this change would be represented.