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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
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.
- Upload a photo converted to a PDF of your completed graph.
- What is the opportunity cost for increasing iPod production from 700,000 to 1300,000? How many Beats?
- What is the opportunity cost of moving from production point G to production point D? How many iPods?
- 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
- 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
- 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
- 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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