Answer question 7 and 8

Figure 2-4 Graph (a) Graph (b) 6 ..... on7 .........* . . ..... 4 ...... ....... ...... ... W TRUCKS TRUCKS N .... N 5 6 2 3 4 5 6 2 3 TRACTORS TRACTORS 7. Refer to Figure 2, Graph (a). Production is a. possible at points P, Q, R, and S, but efficient only at points P, R, and S. b. possible at points P, Q, R, and S, but efficient only at point Q. c. possible at points P, R, S, and T, but efficient only at points P, R, and S. d. possible at points P, R, S, and T, but efficient only at point T. 8. Refer to Figure 2-4, Graph (a) and Graph (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Graph (a) to Graph (b)? a. The trade-off between the production of tractors and trucks changes. b. The opportunity cost of a truck is higher at all levels of truck production. c. Production of 3 tractors and 3 trucks becomes possible. d. Production of 2 tractors and 3 trucks becomes efficient