Redraw the PPFs for the United States and China from Figure in the chapter. Assume that the initial production and consumption points (A and A') and the new production points (B and B') are the same as in that figure. Plot the new consumption points (C and C') that correspond to your results from the previous problem(7).

Transcribed Image Text:

Bushels of Wheat point A all resources are used for wheat Maving from point A to point B requires shifting resources out of wheat and per Year ,000,000 950,000 c Linto tanks. 850,000Y-- 700,000 At point F all resources 400,000t +-....+ トーーーー -4-4are used for tanks Number of 1000 2,000 3,000 4000 5,000 Tanks per Year