This preview shows page 1 - 3 out of 3 pages. Could a PPF be bowed towards the origin? p She takes a full load of classes and has only 5 hours per week for her hobby. (d) Along a bowed out PPF as more of a good is produced, the opportunity cost of producing it decreases. But if I want 1 more rabbit, the production possibilities frontier drops off, and I will have to give up 40 fruit. Using data in the table, graph the ppf (with carpet on the vertical axis) b. Resources were not used efficiently if production can be increased with no opportunity cost. If Cliff switches to making posters, then each poster costs your team 900:3 = 300 entries. (a) The opportunity cost of moving from point b to c is 10 units of butter. Mythica, which is a hypothetical economy, produces only two goods – textbooks and computers. This question does precisely that! In a world of scarcity choosing one thing means giving up something else. The opportunity cost of producing the first 500 Toyota is 600. What is the opportunity cost of moving from producing 3725 Lexus to 3950 Lexus? l a� � � � � � � � $$If a$n kdT $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� a) The frontier reflects constant costs of production. Which of the following statements is TRUE? � He has over twenty years experience as Head of Economics at leading schools. w w w w w R R R $ � � _ � 4 R R R R R 4 w w � I f f f R It is not the same opportunity cost at all points. A � � � � � � � � � If the PPF is a STRAIGHT LINE as shown in the first graph, then the slope is CONSTANT. So producing 5 more missiles will mean giving up 500 guns. l a� � � � � � � � $$If a$n kd� $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� The specific assumption of PPF here is the PPF is curved and not linear with increasing opportunity cost. So 1 more rabbit means that I have a cost. down. University. Opportunity Cost and PPF Questions (Check for Understanding).doc, Unit 2 Production Possibilities Frontier Worksheet.pdf, _production_possibilities_frontier_worksheet.pdf, First Coast High School • ECONOMICS AND FINANCIAL LITERACY 101, Freeland Middle School/high School • ECON 3, production-possibilities-frontier-worksheet, Copyright © 2020. What is the opportunity cost of … Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. So I have to give up, on average, 40 berries. c) 5/10 fish d) 10/5 coconuts. The production possibility frontier (PPF) for computers and textbooks is shown here. The opportunity cost of watching TV on a weeknight is the benefit you could have gotten from studying. Explain in your words why it is this shape. I have to stay on the production possibilities frontier, sometimes abbreviated as PPF. Question 1 . Apply the PPF… On the following graph, use the blue points (circle symbol) to plot Megan's initial production possibilities frontier (PPF). l a� � � � � � � � $$If a$n kd~ $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� Q. Suppose two countries face this identical production possibilities frontier… � � _ 0 � � , � f � � � � R R f R R R R R 4 4 f R R R � R R R R ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� � R R R R R R R R R � � : PPF and Opportunity cost questions Maximum possible combinations of food and clothing that can be produced in a given period of time: Units of food (millions)Units of clothing (millions)8.00.07.02.26.04.05.05.04.05.63.06.02.06.41.06.70.07.0 Draw a PPF for this economy. � If you ask Adam to make posters, the opportunity cost of each poster is 400 entries. 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