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1. Graph the production possibilities schedule putting loaves of bread on the vertical axis and chickens on the horizontal axis. Scenario Loaves of Bread Chickens

1. Graph the production possibilities schedule putting loaves of bread on the vertical axis and chickens on the horizontal axis.

Scenario

Loaves of Bread

Chickens

a

50

0

b

45

6

c

35

15

d

15

22

e

0

32

2. Calculate the opportunity cost of bread when the economy moves from point C to D. What is the opportunity cost of Chickens when the economy moves from C to B? (5 each)

3. On your graph from question # 1, put in dotted lines a new production possibilities frontier showing what would happen if there is a technological improvement in the making of bread.

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