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Unformatted text preview: this and therefore the models cannot describe reality exactly. 4. Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the cow population? The curve becomes steeper as shown in the diagram above. Because the cow population is cut in half, it is safe to assume that the outcome of milk is also cut in half. 5. Use a production possibilities frontier to describe the idea of efficiency. a. Any combination of quantity of both items that falls along the frontier curve results in an efficient production. Any point in side the curve is an inefficient use, meaning that all available resources were not used. Any point on the outside is not possible and therefore not efficient....
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- Fall '08