Imagine you have a 4 hour period of time to devote to an activity. Draw a production possibilities frontier that illustrates your ability to produce two different outputs.

1. Label each axis with the type of production you have chosen.

• For example, I might illustrate my PPF for dog walks (measured in miles) and painting pet portraits (measured in # of portraits).
• Do NOT measure your activities in hours. Select some unit for the activity (games played, cars washed, pages read, etc.)

2. Draw your PPF and label at least 4 points on the PPF. (It is easiest to start with points A and D, and then fill in B and C.)

• Point A: This point should be the vertical intercept. This represents devoting all 4 hours to the activity you placed on the vertical axis.
• Point B, Point C: These two points represent some split of your time between the two activities.
  • As you create these points, think carefully about the curved shape of the PPF, which demonstrates increasing opportunity costs.
• Point D: This point should be the horizontal intercept. This represents devoting all 4 hours to the activity you placed on the horizontal axis.
• Connect the points to create a PPF.

3. a sentence that discusses the opportunity cost of moving from point A to B. This will be an exact numeric value based on the PPF you created.

4. Write an additional sentence that discusses the opportunity cost of moving from C to D. This will be an exact numeric value based on the PPF you created.