AP Macro Topic 1.2 The Production Possibilities Curve Part 1 - Check Your Underatan Chips Magal Pretech [Bag7) Can the economy of Macrostan produce 15 bags of chips at the same time ful they bags of pretzels? Why or why not? 2 Identify a specific combination of chips and pretzel Macrostan's resources. Explain. id represent an Inefficient use of or why not? 3. Assume that Macrostan produces at combination A Is that combination efficient or inefficient? Why 4. How would a technological change that increases the production of only pretzels affect the production of chips? Explain. 5. Use the numbers in the table to draw a production possibilities curve on the graph to the right. Be sureto 16 label the axes and each combination (A-E). 19 6. Calculate the opportunity cost if Macrostan switched from producing combination A to producing B. 12 7. Calculate the opportunity cost if Macrostan switched 10 from producing combination B to producing C. 8. Suppose that Macrostan is producing combination C. Show what will happen on the graph if there is a 0 20 30 40 50 decrease in demand for chips