The President is proposing a new government program that will hire engineers to develop a newer way of producing electricity that emits fewer pollutants.

The President is interested in the trade-offs that the country faces and how thus policy will change those trade-offs, lie is just interested in the trade-off between two "goods" - a clean environment and the quantity of industrial output.

Your briefing of the President will cover the following issues/questions.

Be sure to write your answers the same way that you would explain to the President in your briefing.

Draw the production possibilities frontier.

What do you suppose determines the shape and position of the frontier.

What happens to the frontier if engineers develop newer way of producing electricity that emits fewer pollutants.

Use the same graph and explain.