Exercise 2: Country Z This exercise is a graded exercise under the Module of Production Possibilities. I enhances your understanding of the law of scarcity and opportunity cost. Complete this exercise and you will have mastered the concepts in Chapter 2 of the course. Country Z is a small economy with limited resources available to produce goods. The only resources that it has available are Labor(L) and Capital (K). These two resources can be used to produce a limited amount of only two possible goods. The two goods are called Good A and Good B. The technology available for producing these two goods only define the number of units of resources A and B are necessary to produce one unit of either good A or Good B. More specifically, a unit of Good A requires 2 units of labor and 4 units of capital. On the other hand, a unit of Good B requires the use of 4 units of labor and 2 units of capital. Country Z only has 200 units of capital and 400 units of labor. A. If Country Z used all of its labor and capital to produce Good A, how many units can it produce? 3 If Country Z used all of its labor and capital to produce Good B, how many units can it produce? C. Using the information you determined in A and B above, draw the Production Possibilities line Country Z. D If Country Z decide to produce 50 units of Good A, how many units of Good B can it produce? E Given the above information, determine the opportunity cost of Good A in terms of Good B