The guns-and-butter curve is the classic economic example of the production possibility curve, which demonstrates the idea of opportunity cost. What is the opportunity cost of moving from point A to point B? Missiles. There is only one resource available in both countries, labor hours. PL 2 HW 2 In this diagram AF is the production possibility curve, also called or the production possibility frontier, which shows the various combinations of the two goods which … b. World's Best PowerPoint Templates - CrystalGraphics offers more PowerPoint templates than anyone else in the world, with over 4 million to choose from. The opportunity cost of producing 50 additional automobiles is zero missiles All choices along the curve shows production efficiency of both goods. What must occur before the economy can attain such a level of production? Consider a simple economy producing two goods: cars and milk. Draw a production possibilities curve for automobiles and missiles using the data above. Here is the production possibilities table for war goods and civilian goods: ______Production Alternative______ Types of Production A B C D E Robots 0 250 450 650 850 Wheat 130 117 109 89 0 Draw a production possibilities curve for robots and wheat using the data above. What is the opportunity cost of moving from point A to point B? 3. Production Possibilities Curve Name _____KEY_____ 1. 1. t ��0 � � � � � � �\� � �� �� �� �4� 4� Below is a production possibilities curve for tractors and suits _____ a. k The PPF simply shows the trade-offs in production volume between two choices. Product Possibilities Curve Worksheet Last modified by: The downward slope of the production possibilities curve is an implication of scarcity. The idea of a production possibility frontier (PPF)--also sometimes called a production possibilities curve--can seem difficult. Label on the graph the points where the economy would be efficient (F), underutilized (G) and unattainable (H). Automobiles 0 2 4 6 8 Missiles 30 27 21 12 0 Draw a production possibilities curve for automobiles and missiles using the data above. One more missile? One more missile? And how much should go to civilian uses like education and health care and the production of consumer goods like computers and automobiles, that's the butter. However, if you understand the intuition behind the economics of the PPF it is really just a graphical representation of what a country or individual is able to produce with a fixed amount of inputs. Further assume that consumers in both countries desire both these goods. l a� � � � � � � � � � � � � � � � � � � � $$If a$gdT� � � � � Automobiles 0 2 4 6 8. ______Production Alternative______ Types of Production A B C D E Butter 0 10 12 14 16 Guns 50 40 30 20 0 Draw a production possibilities curve for butter and guns using the data above. And that curve we call, once again-- fancy term, simple idea-- our production possibilities frontier. Draw a product possibilities curve for automobiles and missiles using the data above. Draw a production possibilities curve for automobiles and missiles using the data above. The following table gives several points on this economy's production possibility frontier. b. Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C). Automobiles 0 2 4 6 8 Missiles 30 27 21 12 0 Draw a production possibilities curve for automobiles and missiles using the data above. Here is the production possibilities table for war goods and civilian goods: ______Production Alternative______ Types of Production A B C D E Tanks 0 10 20 30 40 Bread 75 68 54 47 0 Draw a production possibilities curve for tanks and bread using the data above. It illustrates the options an economy has when producing two products. The maximum number of cars that can be produced is 150 as given by productio ... curve, increasing airplane output and decreasing car production, some workers switch to making airplanes. ��ࡱ� > �� Q S ���� P �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� � �� [ bjbjΚΚ .D �� �� [ �� �� �� � � � � � � ���� � � � � � � $ � � � � � � � � � ~# �# �# �# �# �# �# , �$ � �' � �# � � � � � � �# � � � � � � �# � � � � Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C). Here is the production possibilities table for war goods and civilian goods: 30 27 21 12 0 Draw a production possibilities curve for automobiles and missiles using the data above. The following diagram (21.2) illustrates the production possibilities set out in the above table. What is the opportunity cost … 2 rabbits and 240 berries. Label the points where the economy would … In order to produce 1,500 WMD, the opportunity If the economy is at point C, what is the cost of one more automobile? What is the opportunity cost of moving from point A to point B? Draw a product possibilities curve for automobiles and missiles using the data above. D) only the points beyond the production possibilities frontier. What is the opportunity cost of moving from point A to point B? b. Label the points where the economy would be efficient (A), Is the PPC a linear line or a curve? 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Explain how the production possibilities curve reflects the law of increasing opportunity costs. production possibilities curve a graph or economic model that shows the maximum combinations of goods and services, any two categories of goods, that can be produced from a fixed amount of resources production possibilities frontier d) What would production at a point outside the production possibilities curve indicate? i What is the opportunity cost of moving from point B to point C? 3 rabbits, and 180 berries. b. What is the opportunity cost of moving from point D to point E? What is the opportunity cost of moving from point D to point E? production possibility curve? Note: You may draw the PPC for your own, but no need to submit the graph for this assignment. If it would cost $300,000 to finish development and make the product, should you go ahead and do so? & R S � � � � l m � � � a. _____ 10. Draw a production possibilities curve for automobiles and missiles using the data above. E) only the points on the production possibilities frontier. Label the points where the economy would … A production possibilities curve shows how well an economy is using available resources and technology during production. 30. 2. The production possibilities curve is also called the PPF or the production possibilities frontier. Production points inside the curve show an economy is not producing at its comparative advantage. . What is the opportunity cost of moving from point D to point E? Winner of the Standing Ovation Award for “Best PowerPoint Templates” from Presentations Magazine. (Indicate the curve you choose with two letters.) Product Possibilities Curve Worksheet. Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C). 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