$3.(5$ points$)$ Draw a production possibilities frontier for a society that produces video games and television sets. Show an example of an efficient point, inefficient point, and infeasible point on your graph. Be sure to label your axes! $4.(10$ points$)$ Sev and Mary have the following valuations for a set of goods: ItemSevs ValuationMarys ValuationBubble gum$515$Chainsaw$71$Volvo$4060$Snickers bar$32$ Sev and Mary are given the following baskets of goods: Sev gets $4$ bubble gum, $0$ chainsaws, $1$ Volvo, and $5$ Snickers bars. Mary gets $1$ bubble gum, $2$ chainsaws, $5$ Volvos, and $2$ Snickers bar. a$.$ What is the total, personal value of Sevs basket? b$.$ What is the total, personal value of Marys basket? c$.$ Propose a trade involving just one item on each side that would make both Sev and Mary better off. Sev trades to Mary $->$ Mary trades to Sev $->5.(10$ points$)$ The baskets from problem #$5$ are changed. Instead, Sev receives $4$ bubble gum, $1$ chainsaw, $1$ Volvo, and $0$ Snickers bars. Mary gets $1$ bubble gum, $0$ chainsaws, $2$ Volvos, and $1$ Snickers bar. a$.$ What is the total, personal value of Sevs basket? b$.$ What is the total, personal value of Marys basket? c$.$ Is this situation Pareto efficient? Circle the correct answer below.YESNO d$.$ If not, what trade should happen to make at least one player better off without hurting the other one $($or improve both players$)?($Hint: Consider trades more complex than $1$ item for $1$ item, such as $5$ items for $1$ item.$)6.(10$ points$)$ Machine #$1$ in the Ford factory can make one steering wheel per hour and one head rest every $15$ minutes. Machine #$2$ in the Ford factory can make one steering wheel every $2$ hours and one head rest every $5$ minutes. a$.$ How many steering wheels can machine #$1$ make in one $24-$hour workday? b$.$ How many steering wheels can machine #$2$ make in one $24-$hour workday? c$.$ Which machine has the absolute advantage in steering wheels? d$.$ Which machine has the absolute advantage in head rests? e$.$ What is the opportunity cost $($OC$),$ in terms of head rests, for machine #$1$ in making one steering wheel? f$.$ What is the OC$,$ in terms of head rests, for machine #$2$ in making one steering wheel? g$.$ Which machine has the comparative advantage in making steering wheels? $7.(10$ points$)$ John works at McDonalds. He can spend his time there preparing burgers or chicken sandwiches. In one hour, if he spends all of his time and resources making burgers, he can make $64$ burgers. In one hour, if he spends all of his time and resources making chicken sandwiches, he can make $16$ chicken sandwiches. Obviously he is also allowed to split his time during that hour making either burgers or chicken sandwiches. Show Johns PPF below. Remember to label the axes and endpoints. Also label the midpoint, where John spends $30$ minutes making burgers and $30$ minutes making chicken sandwiches. Labeling a point means listing its x$-$ and y$-$coordinates. $8.(5$ points$)$ In problem #$7,$ what is Johns OC of making $2$ chicken sandwiches? $9.(20$ points$)$ Draw the societal PPF for pens and paper that would combine the productions of Darrin, Henry, Frank, and Tracy. The table below shows their individual productions of each good separately, assuming they spent all their time producing just that one good. Be sure to label your axes, each segment of the societal PPF $($by attaching a name to it$),$ endpoints, and all middle points where the slope changes $($i$.$e$.,$ where a kink in the graph occurs$).$ I suggest you use Excel for this, or at least graph paper. If you draw it by hand, please demonstrate a minimal artistic ability that at least includes drawing straight lines and marking off intervals on your graphs evenly. DarrinHenryFrankTracyPens$10653$Paper$412115$ Please circle the correct answer for the multiple choice questions that follow. Each is worth $2$ points. $1.$ Economic scarcity arises from:a$.$ Inefficient productionb. Explorationc. Limited wants and limitless resourcesd. Limited resources and limitless wants $2.$ Economic scarcity is experienced by:a$.$ Only the poorb. Only the wealthyc. Only producersd. Everyone in society $3.$ Economics is:a$.$ A social scienceb. A physical science $4.$ Factors of production include all of the following EXCEPT:a$.$ Laborb. Landc. Capitald. Human capitale. None of the above answers are correct because all of the above are factors of production $5.$ Which of the following statements is$/$are correct?I. The alternative thing given up to get something else is a good definition of opportunity costII$.$ Wealthy economies like the U$.$S$.$ do not face tradeoffsIII. Scarcity creates opportunity costsIV$.$ None of our ten principles address opportunity costa$.$ Statement I onlyb. Statements II and IV onlyc. Statements I and III onlyd. Statements I, II$,$ and III onlye. All of the above statements are correct $6.$ You have the choice of going to Disney World for the week, going skiing for the week, or working at your job for the week. The opportunity cost of going to Disney World is:a$.$ The combined value of working and skiingb. Zeroc. The value of working or skiing, depending on which you would have chosen instead of Disney Worldd. The amount of money you spend on soda while at Disney World $7.$ Which of the following statements apply to economic models?I. An economic model makes assumptionsII. An economic model is simpler than the reality it explainsIII. The production possibilities frontier is one example of an economic modela. Statement I onlyb. Statements II and III onlyc. All of the above statements are correct $8.$ Which of the following is NOT illustrated by a PPF$?$a$.$ Scarcityb. Who gets the goods producedc. Opportunity costd$.$ Necessity of making tradeoffs $9.$ A country that must decrease production of one good in order to increase the production of anothera. Must be using resources inefficientlyb. Must be using resources efficientlyc. Must be producing inside its PPFd$.$ Must be producing outside its PPF $10.$ Suppose a country, when operating on its PPF$,$ can produce $25$ tons of corn and $60$ tons of wheat OR $26$ tons of corn and $55$ tons of wheat. At that point on the PPF$,$ the opportunity cost of $1$ ton of corn is:a$.10$ tons of wheatb. Nothing. Scarcity is a lie dreamed up by the NSA and inserted into principles of economics classes in order to control the masses.c$.55$ tons of wheatd. $5$ tons of wheat$9$