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Drawing Production Possibilities Curves

This document contains instructions for two exercises on production possibility curves. The first asks students to draw a PPF showing the production possibilities of smartphones and pizza for an economy that can produce combinations of 50/0, 40/100, 30/200, 20/300, 10/400, and 0/500. It also asks them to evaluate if a point of 30 smartphones and 150 pizzas is possible and if 50 smartphones and 100 pizzas is possible given the same resources. The second exercise provides data to draw a PPF for an economy that produces TVs and strawberries, and asks similar evaluation questions.

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Komal khubbad
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39 views2 pages

Drawing Production Possibilities Curves

This document contains instructions for two exercises on production possibility curves. The first asks students to draw a PPF showing the production possibilities of smartphones and pizza for an economy that can produce combinations of 50/0, 40/100, 30/200, 20/300, 10/400, and 0/500. It also asks them to evaluate if a point of 30 smartphones and 150 pizzas is possible and if 50 smartphones and 100 pizzas is possible given the same resources. The second exercise provides data to draw a PPF for an economy that produces TVs and strawberries, and asks similar evaluation questions.

Uploaded by

Komal khubbad
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Course: Microeconomics

Topic: Chapter 2

Exercise: Creating a Production-Possibilities Curve

An imaginary economy “A” has a capacity of producing only two products: Smartphone
and Pizza. The table below shows the combinations of the production possibilities.

  Smartphone Pizza
Point 1 50 0
Point 2 40 100
Point 3 30 200
Point 4 20 300
Point 5 10 400
Point 6 0 500

Task 1: Draw production possibilities frontier (PPF).


Task 2: How would you judge a production possibility point of 30 smartphones and 150
pizzas? Can the economy produce 50 smartphones and 100 pizzas by using the same
amount of resources?

Smartphone

50

40

30

20

10

0 Pizza
100 200 300 400 500 600
Course: Microeconomics
Topic: Chapter 2

Exercise: Creating a Production-Possibilities Curve

An imaginary economy “B” has a capacity of producing only two products: TV and
Strawberry. The table below shows the combinations of the production possibilities.

Task 1: Draw production possibilities frontier (PPF).


Task 2: How would you judge a production possibility point of 300 TVs and 40
strawberries? Can the economy produce 400 TVs and 50 strawberries by using the
same amount of resources?

  TV Strawberry
Point 1 400 0
Point 2 300 50
Point 3 200 75
Point 4 100 85
Point 5 0 90

TV

500

400

300

200

100

1 Strawberry
10 20 30 40 50 60 70 80 90

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