Exercise No.

1 Introduction in Economics
Name: CYRELLE C. TABAL Section: MAED HT
Critical Thinking Question

A) What is the maximum quantity of corn that can be produced, if the society produces no
wheat?
 The maximum quantity of corn that can be produced, if the society produces no wheat is
80.
B) If the society produces 15 units of wheat, what is the maximum quantity of corn it can
produce?
 The maximum quantity of corn it can produce is 60.
C) Does point A represent an efficient use of resources?
 NO. beacause point A explains that it can only produce corn but cant produce wheat or
the economy can only produce one goods.
D) Which point on the graph represents combination of outputs that is unattainable?
 POINT A and B
E) Find a point in the graph that illustrates an efficient use of resources.
 Point A, C, D, and F illustrates an efficient use of resources because it shows that the
economy can produce both goods.
F) Suppose the society moves from (efficiently) producing only wheat to producing both wheat
and 40 units of corn. What is the opportunity cost of producing these 40 unirts of corn?
 20
G) Suppose the society moves from (efficiently) producing 40 units of corn to producing 80 units
of corn. What is the opportunity cost of producing these last 40 units of corn?
 0
H) Comparing to your answer to part (G) to your answer in part (F), what point about the use of
resources for different kinds of production is illustrated?
 Point D
I) Would producing at point D be the best choice for this society? Explain your answer
 YES. Yes because the economy can produce 40 of corn and can also produce 20 of
wheat. It shows that point D can produce both goods in the production of economy.