a) The frontier reflects constant costs of production. Ppf and opportunity cost questions and answers 12 Total Attempts: 7087 Supply and Demand Elasticity Economy Price Which of the following best describes three fundamental economic issues? Apply the PPF… 100 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. Course Hero, Inc. In the case of Becci, each poster costs 1200:2 = 600 entries. In a world of scarcity choosing one thing means giving up something else. ... What graphically shows the opportunity cost of producing one more unit of one good in terms of the amount of the other good that must be given up? p 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. # � � � o Given the PPF illustrated, what is the opportunity cost of moving from B to A? Swinburne University of Technology. STRAIGHT LINE PPF AND CONSTANT OPPORTUNITY COST . �= �= A �� �� �� � � � ���� # T � . Calculations: 5000-4400. Examples of opportunity costs . PPF and Opportunity cost questions ANSWER … 30 seconds . Academic year. Opportunity Cost and PPF Questions.doc - PPF and Opportunity cost questions ANSWER ON YOUR OWN PAPER Maximum possible combinations of food and clothing, 1 out of 1 people found this document helpful, Maximum possible combinations of food and, clothing that can be produced in a given period of, 1.Draw a Production Possibilities graph for, from producing 4 million units of food to, from producing 6 million units of clothing, 4.What is the opportunity cost of switching, 6.Why do you think production possibilities, Suppose massive new sources of oil and coal are found within the, economy and there are major technological innovations in both, sectors of the economy. w w f R f f � � w ���� = ���� \ Calculate The Opportunity Cost Of Pencils If The Supplier Moves From Possibility E To Possibility D. What is the opportunity cost of switching production from 0 units of food to 2 million units of food? Resources were not used efficiently if production can be increased with no opportunity cost. � The last option is the most attractive, so Cliff should be the first who is assigned to do the posters. 2. Q. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. Course Hero is not sponsored or endorsed by any college or university. Question: 1. � � l a� $$If a$ $a$ � � � � � � � $$If a$n kd� $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� A � � � � � � � � � Practice Questions to accompany Mankiw & Taylor: Economics 1 Chapter 3 1. Exhibit 2 Answer: Calculate The Opportunity Cost Of Pens If The Supplier Moves From Possibility C To Possibility D. B. Her opportunity cost of producing a second boat per day is per day. Which curve in the diagram would. Opportunity cost: Suppose the economy is producing a bundle of goods 1 and 2 and the bundle is (x,y). Draw Angela's production possibilities frontier for pots and mugs. � View Opportunity Cost and PPF Questions (Check for Understanding).doc from ECONOMICS AND FINANCIAL LITERACY 101 at First Coast High School. Practice question with answers. Jack has two leisure activities (hobbies) – reading books and watching movies. l a� � � � $$If a$n kd� $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� If you ask Adam to make posters, the opportunity cost of each poster is 400 entries. (1 1. This means the opportunity cost is also CONSTANT. Maximum possible combinations of food and clothing that can be produced in a given period of time: Units of food (millions) Units of clothing (millions) 8.0 0.0 7.0 2.2 6.0 4.0 5.0 5.0 4.0 5.6 3.0 6.0 2.0 6.4 1.0 6.7 0.0 7.0 1.Draw a Production Possibilities graph for this economy. @ A ������������ h�h� 5�CJ OJ QJ \�^J h�h� CJ OJ QJ ^J h�h� h�h� 5�>*\� # $ � � � � � � � � � � � � �  � � n kd $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� if the PPF is curved, the opportunity cost is changing. The opportunity cost of producing the first 500 Toyota is 600. The following TWO questions refer the diagram below, which illustrates the PPF for a producer of two goods, x and y. ... you should never see a the ppf shift which way? Chapter 2: The Economic Problem (PPF And Opportunity Cost) + Possibility A B с D E F Pens 0 100 200 300 400 500 Pencils 1000 950 800 600 350 0 A. b) 10 fish. down. It is not the same opportunity cost at all points. p Answer: No. Using data in the table, graph the ppf (with carpet on the vertical axis) b. b) The opportunity cost of moving from Point B to Point D is 5 million units of food. (a) The opportunity cost of moving from point b to c is 10 units of butter. a. What is the opportunity cost of … The opportunity cost of watching TV on a weeknight is the benefit you could have gotten from studying. 4. The PPF assumes that technological infrastructure is constant, and underlines the notion that opportunity costs typically arise when an economic organization with … The specific assumption of PPF here is the PPF is curved and not linear with increasing opportunity cost. &. 28 Questions Show answers. Consider the PPF diagram below. Course. This quiz has around twelve questions of the same topic; choose the correct answer. He has over twenty years experience as Head of Economics at leading schools. What time to produce, what place to produce and how to produce? Angela is artistic and can make 2 clay pots per hour or 4 coffee mugs per hour. Suppose two countries face this identical production possibilities frontier… As you can see, to move from point A to point B, society gains 40 dozen eggs at a "cost" of 200 cakes of Have a go! PPF and Opportunity cost questions. I have to stay on the production possibilities frontier, sometimes abbreviated as PPF. ��ࡱ� > �� 9 ; ���� 8 �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� � �� A bjbj�W�W ." 30 25 Initial PPF 20 New PPP 15 BOATS Megan is currently using combination D, producing one boat per day. left. In this example, the opportunity cost of the 3,000 extra guns is one million pounds of butter forgone. answer choices .   Terms. c) 5/10 fish d) 10/5 coconuts. Tags: Question 26 . This preview shows page 1 - 3 out of 3 pages. Dayne Lee. So producing 5 more missiles will mean giving up 500 guns. 2. What is the opportunity cost of moving from producing 4 million units of food to 5 million units of food? l a� � � � � � � � $$If a$n kd� $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� a. Or I guess the acronym for it, I should say, is PPF. On the most fundamental level, the opportunity cost of moving from D to C is the butter given up to produce the extra guns. l a� � � � � � � � $$If a$n kd* $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� w w w w w R R R $ � � _ � 4 R R R R R 4 w w � I f f f R Solution for ack has 4 hours of free time (leisure) per day. If the PPF is a STRAIGHT LINE as shown in the first graph, then the slope is CONSTANT. If Cliff switches to making posters, then each poster costs your team 900:3 = 300 entries. l a� � � � � � $$If a$n kd $$If �l � �0 ��9t" � ; �0 � � � � � � ��"6� � �� � �� � �� � �4� Possibility D. B of watching TV on a weeknight is the opportunity cost Questions ANSWER your! 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Up 40 fruit � ���� # T � of a PPF and opportunity of. – reading books and watching movies leisure activities ( hobbies ) – reading books watching... View ppf and opportunity cost questions and answers cost Questions 2 Question 1 with increasing opportunity cost is changing or! X and y # T � more missiles will mean giving up 1.5.! Initial PPF 20 New PPP 15 BOATS Megan is currently using combination,! Costs of production also be shown graphically, the result being a production Possibility frontier PPF.