Graphing Production Possibilities Curves
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ScribdTranslationsGraphing Production Possibilities Curves
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ScribdTranslationsPractical Exercise
1. Show, graphically, the occurrence of the following situations, given a possibilities curve of
production (CPP):
Full employment of production factors.
b) An impractical production level in the short term.
c) A level of production where there is idle capacity (unemployed factors of production or
underutilized.
2. In the following graph, the production possibilities curve of an economy is represented by the line
the key connecting points A and B. The displacement of the curve to the position occupied by the broken line
which connects points A and C is compatible with the following cause:
3. A company produces two goods (good 1 and good 2). Based on the table below, graphically represent the
production possibilities curve of the company and determine:
the opportunity cost of increasing the production of good 1 from 100 to 400 units
the opportunity cost of increasing the production of good 1 from 400 to 650 units
the opportunity cost of increasing the production of good 2 from 100 to 200 units
the opportunity cost of increasing the production of good 2 from 200 to 300 units
Possibility Well A Good B
A 1000 0
B 850 100
C 650 200
D 400 300
E 100 400
F 0 435
[Link] economy is capable of producing the following combinations of goods and services, in a certain
time frame, fully utilizing (and with maximum productive efficiency) all its resources,
given a certain technology.
a) Graphically represent the production possibility curve of this economy
Bens (unidades) 100 80 60 40 20 0
Serviços (unidades) 0 50 90 120 140 150
b) Is it possible for this economy to produce the following combinations of goods and services?
80 units of goods and 50 units of services ____________________________________ Yes / No
(ii) 70 units of goods and 90 units of services ___________________________________ Yes / No
(iii) 40 units of goods and 100 units of services __________________________________ Yes / No
c) What is the opportunity cost (in terms of services) of producing 20 additional units of goods if
the economy is initially producing:
(i) 60 units of goods _________________________________________________________________
(ii) 20 units of goods ________________________________________________________________
What change needs to be verified in this economy for it to produce 100 units of goods?
80 service units?
e) Graphically sketch (in the same diagram) a new production possibilities curve (in a color)
different), assuming that there is a technological improvement in the production of goods, everything else remains constant.