2) 15pts a. Draw the Production Possibilities Frontier (Curve) for the economy of the
fictional country of Murica that makes only tanks and/or hot dogs (max 20
million tanks and 200 million hot dogs) with tanks on the X axis. Label your graph
and show where production is efficient, impossible to sustain, and inefficient.
(10pts)
b. On the same PPF graph, show what would happen if Murica peacefully took over
Canuckia who has additional land, labor and capital. (5pts)

A. economic resources to be used or turned into cash within one year. b. reports assets, liabilities, and stockholders' equity. c. decrease assets; increase liabilities and stockholders' equity. d. increase assets; decrease liabilities and stockholders' equity. e. an exchange or event that has a direct and measurable financial effect. f. accounts for a business separate from its owners. g. the principle that assets should be recorded at their original cost to the company. h. a standardized format used to accumulate data about each item reported on financial statements. i. the basic accounting equation. j. the two equalities in accounting that aid in providing accuracy. k. the account credited when money is borrowed from a bank using a promissory note. l. cumulative earnings of a company that have not yet been distributed to the owners. m. every transaction has at least two effects. n. amounts presently owed by the business. transaction, separate entity assumption, balance sheet, liabilities, assets, current assets, notes payable, duality of effects, retained earnings, debit.