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Depict two separate production possibilities curves and clearly label which one represents the quadrant 2 scenario and which one represents the quadrant 3 scenario. Assume Medical Care is on the vertical axis and All Other Goods and Services are on the horizontal axis in both diagrams. You should also identify a point where society will be under each scenario and label it K in each diagram. Explain how risk sharing impacts the production possibilities curve you drew and ultimately society by describing each diagram in four sentences or less.
Quadrant Information:
1 - fixed payment, low, low likelihood
2 - Variable payment, low, high likelihood
3 - Fixed payment, high, very low likelihood
4 -Variable payment, high, moderate likelihood
The best use of scarce resources paid for at the minimum level of cost to consumers and businesses
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