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iPods and Beats. Each is measured in units of 100,000. Figure 2 is a graph to plot combinations of A-H to find the Production Possibilities

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iPods and Beats. Each is measured in units of 100,000. Figure 2 is a graph to plot combinations of A-H to find the Production Possibilities Curve (PPC).

Complete Figure 2 on the sheet by plotting out the combinations for A-H on the graph. You will need this to answer the questions that follow.

  1. Upload a photo converted to a PDF of your completed graph.
  2. What is the opportunity cost for increasing iPod production from 700,000 to 1300,000? How many Beats?
  3. What is the opportunity cost of moving from production point G to production point D? How many iPods?
  4. On your production possibilities frontier drawn above, which point or points are possible for this economy to produce? Choose the best answer.
    • All points: A, B, C, D, E, F, G, H, I, J, K, L, M
    • Only A, C, J, M
    • Only A, B, C, D, E, F, G, H
    • Only I, J, K, L, M
    • Only A, B, C, D, E, F, G, H, I, J
    • Only A
    • Only M
  5. On your production possibilities frontier drawn above, which point or points represent the maximum possible production of Beats? Choose the best answer.
    • A
    • A & E
    • H
    • J
    • H & J
    • L
  6. On your production possibilities frontier drawn above, which point or points are NOT possible for this economy to produce? Choose the best answer.
    • I & J
    • J
    • K, L, & M
    • K
    • A, G, & H
  7. On your production possibilities frontier drawn above, which point or points are efficient?
    • All points: A, B, C, D, E, F, G, H, I, J, K, L, M
    • Only A, C, J, M
    • Only A, B, C, D, E, F, G, H
    • Only I, J, K, L, M
    • Only A, B, C, D, E, F, G, H, I, J
    • Only A
    • Only M
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