1. Suppose that the small country of Karscigstan produces two goods: Tanqueray Gin (TG) and foot-long hot dogs (FLHDs). Assuming increasing opportunity costs, draw a production possibilities curve (PPC) for Karscigstan (be sure to label both axes correctly).

2. On your graph of the PPC from #1, find and label the following:

A. an inefficient point (label it A)

B. an efficient point (label this one B)

C. an unattainable point (label it C)

3. Due to the recent mass immigration inflows along it's southern border, Karscigstan has experienced an increase in the size of its labor force. On your graph above, show how this change affects the PPC of Karscigstan.

4. In your own words, what is meant by the term
"opportunity costs?" Give three (3) examples of opportunity costs associated with you being stuck in this class with me!