1. Suppose that the PPF for two goods are Possibility Food Machines (point) (tons) (Numbers) A 0 14 B 12 C D w 1 9 5 4 0 a) How many points are there in the PPF? b) Draw the PPF for this society. C) Is it possible to produce 3 units of food and 9 units of machines? Why? Is it a good choice? d) Is it possible to produce 2 units of food and 5 units of machines? Why? Is it a good choice? e) Is producing one ton of food and 5 machines attainable? is it efficient? f) Calculate the opportunity costs of producing food from A to B, B to C, C to D and D to E. g) What is the opportunity cost of one machine if the economy moves its production from points D to C? h) What is the opportunity cost of 4 tons of food? 1) Assume a discovery of new technology that will reduce the costs of machine production, what will happen to the PPF of the society? Draw the new PPF on the same diagram j) How does the PPF illustrate scarcity