5. Figure 1: The Production Possibilities Frontier B A C D E F W Number of Lives Saved per Period Quantity of All Other Goods per Period 100,000 200,000 300,000 400,000 500,000 1,000,000 950,000 850,000 700,000 500,000 400,000 At point A, all resources are used for "other goods." Moving from point A to point B requires shifting resources out of other goods and into health care. At point F. all resources are used for health care.

9. Figure 2: Production and Unemployment A B Civilian Goods per Period Military Goods per Period 2. then moved to the PPF during the war. Both military and civilian production increased. 1. Before WWII the United States operated inside its PPF . . .

13. Figure 3: The Effect of a New Medical Technology 300,000 500,000 600,000 1,000,000 700,000 A J D H F F' Number of Lives Saved per Period Quantity of All Other Goods per Period 1. A technological advance in saving lives increases this PPF's horizontal intercept . . . 4. or more lives saved and greater production of other goods. 3. The economy can end up with more lives saved and un-changed production of other goods . . . 2. But not its vertical intercept.