Activity #2

Part 1
1. Draw an example of a production possibilities frontier for Aqua Man and Iron Man.

A. Production Possibilities

  Minutes needed to collect 1 kg of: Amount in 8 hours:

  Fish Coconuts Fish Coconuts

Aqua 10 min/kg 40 min/kg 48 12

Man

Iron Man 30 min/kg 15 min/kg 16 32

B. Aqua Man’s Production Possibilities C. Iron Man’s Production Possibilities

Frontier   Frontier

 
2. Does this frontier limit Iron Man’s consumption of coconuts and fish if he lives by
himself? Why?
If individual Irons Man’s lives alone and does not trade ,then he has to limit his
consumption of both goods as he has limited time.
3. Would Iron Man face the same limits if he could trade with Aqua Man? Why?
Then they can exchange with others on the basis of theirs needs .He can have many
coconuts he wants in exchange for more fish he has now .In this way his consumption is
not limited now.