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    Itz Ahjay
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    This document contains an activity on production possibilities curves. It includes a production possibilities table showing the tradeoff between capital goods like hand tractors and consumer goods like rice. It asks the student to [1] graph the data on a production possibilities curve with hand tractors on the y-axis and rice on the x-axis, [2] identify the geometric shape as a downward sloping curve, and [3] explain that the curve reflects increasing opportunity costs as more is produced of one good and less of the other.

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    Activity-No.-1

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    This document contains an activity on production possibilities curves. It includes a production possibilities table showing the tradeoff between capital goods like hand tractors and consumer goods like rice. It asks the student to [1] graph the data on a production possibilities curve with hand tractors on the y-axis and rice on the x-axis, [2] identify the geometric shape as a downward sloping curve, and [3] explain that the curve reflects increasing opportunity costs as more is produced of one good and less of the other.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    3 views1 page

    Activity No. 1

    Uploaded by

    Itz Ahjay
    This document contains an activity on production possibilities curves. It includes a production possibilities table showing the tradeoff between capital goods like hand tractors and consumer goods like rice. It asks the student to [1] graph the data on a production possibilities curve with hand tractors on the y-axis and rice on the x-axis, [2] identify the geometric shape as a downward sloping curve, and [3] explain that the curve reflects increasing opportunity costs as more is produced of one good and less of the other.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    Name _________________________________________ Email Address________________

    Course & Year__________________ Date Performed______________

    Activity No. 1
    The Production Possibilities Curve

    1. Below is a production possibilities table for capital good (Hand Tractor) and consumer good (Rice):

    Production Rice Output Hand Tractor Output


    Alternatives (In tons)
    A 0 1000
    B 100 950
    C 200 850
    D 300 650
    E 400 400
    F 500 0

    a. Show these data graphically. (Hand Tractor on the Y axis, Rice on the X axis). Label the points.
    b. What is the geometric shape of the curve? ____________________________
    c. What are the specific assumptions considered in drawing a production possibilities curve?
    _____________________________________________________________________________________

    Hand
    Tractor

    1000

    900

    800

    700

    600

    500

    400

    300

    200

    100

    0
    100 200 300 400 500 600 Rice

    d. If the economy is at point C, what is the cost of one more hand tractor? _________
    Of one more rice? __________
    e. Explain how this curve reflects increasing opportunity costs. __________________
    ________________________________________________________________

    f. What must the economy do to operate at some point on the production possibilities curve?
    ________________________________________________________________

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