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For each question and sub-question, remember to label figure titles and axes, and reference specific points and any movements along the axes that many occur.

For each question and sub-question, remember to label figure titles and axes, and reference specific points and any movements along the axes that many occur.

  1. Draw production possibility curve with medical services on the x-axis and all other goods and services on the y-axis.
  2. Define the concepts of (1) opportunity costs and (2) increasing opportunity costs using the graph.
  3. Explain the difference between opportunity costs and increasing opportunity costs. Include in your response an explanation on how opportunity costs relate to increasing opportunity costs.
  4. Draw the total product curve of health as a function of medical services.
  5. Use the curve to show the difference between a treatment expansion and a treatment substitution.
  6. Explain how a change in a lifestyle factor and a change in medical technology each affect the curve. Note how each would potentially cause a shift and/or rotation in the curve.

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