Question

The nation of Elistan produces only apples and books.

1. In a correctly labeled graph, draw a production possibility curve that exhibits increasing cost of production of apples and books. 3 points

2. Suppose technological advances have been made in both apple and book production. Adjust the graph you’ve drawn in part (a) to reflect this economic growth. 1 point

3. Now suppose that the technological advance has only increased apple production, but has not affected book production. Describe how this would have changed the graph you drew in part (b). 1 point

Answer 1