1. Jackie land is known for the production of Cupcakes and Robots.

The fo
a PPT for Jackie land:
ECONOMICS
PPC Practice Production Possibilities Curve / Production Possibilities Frontier
A B C D E F G H I
1. Jackie land is known for the production of Cupcakes and Robots. The following is
Cupcakes:
a PPT for Jackie land: 0 2 6 10 14 18 22 26 28
Robots: 30 28 26 22 18 14 10 6 2
A B C
a) Draw and labelD(eachEaxis and
F
eachG point).
H
Put Icupcakes
J
on the Y
Cupcakes: 0 b) Indicate
2 6on the10graph14 18 K22where26inefficient
with Point 28 is.
30
Robots: 30 c) Indicate
28 on graph
26 22 with
18Point14L where
10 unattainable
6 2 is 0
Note that points A – J indicate efficient uses of resources.
(a) Draw
a) aDraw
diagram
andtolabel
illustrate
(eachthe date
axis andabove
eachand label Put
point). eachcupcakes
axis and each point.
on the Y Put cupcakes on the Y.
b) Indicate on the graph with Point K where inefficient is.
c) Indicate on graph with Point L where unattainable is
Note that points A – J indicate efficient uses of resources.

PPC Practice

1. Jackie land is known for the production of Cu

a PPT for Jackie land:

A B C D E

Cupcakes: 0 2 6 10 14
Robots: 30 28 26 22 18

2. Draw a second Productiona)Possibilities

(b) Indicate on the graph (with point K) where inefficient production
Draw and label
is.
(each
Graph withaxis
twoand each point). Put cu
frontiers.
a. Draw arrows b) Indicate
to show growth on the graph with Point K where ineffici
(c) 2. Draw a second Production Possibilities Graph with two frontiers.
c) Indicate
Indicate on the graph (with point L) where unattainable production is. on graph with Point L where unattainable
a. Draw arrows to show b. List reasons for growth:
growth
Note that points A – J indicate efficient uses of reso
Note that points A until J indicate efficient use of resources.
b. List reasons for growth:

(d) Draw a second PPC/PPF with two frontiers or curves.

• Draw arrows to show growth
• List reasons for growth:

2. Draw a second Production Possibilities Graph wit

a. Draw arrows to show growth
b. List reasons for growth:
 Note that points A – J indicate efficient uses of reso

(e) Draw a third PPC/PPF with two frontiers or curves.

• Draw arrows to show decline
• List reasons for decline:

. A zoo cannot have everything it wants. It has to make choices. The zoo committee
as decided that it can have several concession stands. It has to decide how many
opcorn stands and how many cotton candy stands to have scattered around the zoo.
The committee made up a table of the different combinations depending upon what
he committee has determined to be the cost of each stand. Now the committee has to
ecide what combination is right.
4. A zoo cannot have everything it wants. It has to make choices. The zoo committee
has decided that it can have several concession stands. It has to decide how many
popcorn stands and how many cotton candy stands to have scattered around the zoo.
. Use the table below and
The committee made graph a Production
up a table of the different Possibilities curve on
combinations depending uponthe graph
what
2. A zoo the
below: committee
cannot has determined
have everything it wants.toItbe
hasthe
tocost
makeofchoices.
each stand.
2. Draw aNow the committee
second
The zoo has Possibilities
Production
committee to that it can have
has decided Graph wit
decide what combination is right. a. Draw arrows to show growth
several concession stands. It has to decide how many popcorn stands and how many cotton candy stands to have
b. List
scattered around the zoo. The committee made up a table of the different reasons for
combinations growth:upon what the
depending
a. Use the table below and graph a Production Possibilities curve on the graph
committee has determined to be the cost of each stand. Now the committee has to decide what combination is right.
below: Popcorn or Cotton Candy
• Use the table below and graph a PPC/PPF on the graph below:

PopcornPopcorn or
Cotton
Cotton Candy
Candy
0 10
1 Popcorn Cotton Candy
9
0 10
2 1 9 7
3 2 7 4
3 4
4 0
4 0

Popcorn Popcorn

Cotton candy

b. Next, label a point of underutilization (inefficiency). Call it Point A, Next, label a

point of efficiency. Call it Point B. Last, label a point that isCotton
now unattainable.
candy
Call it Point C.

• Next,
. Next, label a label
point of underutilization
a point (inefficiency).
of underutilization (inefficiency). Call it PointCall
A. it Point A, Next, label a
• Label
c. Look at the
a point table: ToCall
of efficiency. getit one
Pointpopcorn
B. stand, how many cotton candy stands
point of efficiency.
• Lastly,
have
labeltoabe
Call
given
point
it Point
thatup
B.
(marginal
is now
Last, label
cost)? Call
unattainable. 10 –it 9
a= ?point
Point C.
that is now unattainable.
Call it •Point
LookC.at the table: To get one popcorn stand, how many cotton candy stands have to be given up (marginal
cost)?
d. What is the marginal cost of 3 popcorn stands?

. Look at the table: To get one popcorn stand, how many cotton candy stands
questions:
wing
ost of combinations
increasing of good Xof
production and good Y on the
good graph below.
• What is the marginal cost ofX3from 0 to
popcorn 10 units,
stands? as
Of 4 popcorn stands?
s and connect them with a smooth curve.
e amount of good Y that would need to be sacrificed.
3. Good X Good Y
37 0
ost of increasing34production
10 of good X from 10 to 20 units, as
30 17
e amount of good Y that would need to be sacrificed.
28 20
20 29
10 36 Answer the following questions:
ost of increasing0production
40 of good X from 20 to 30 units, as
e amount of good Y that would need to bea.sacrificed.
If Athletic Country currently produces 100 bats and 400 rackets, wha
Answer the following questions:
• Calculate the opportunity cost
0 toof10an additional 100 bats?
o the opportunity costthe
as cost of increasing production
the production of good Xofincreases?
good X from units, as measured in the amount of good
Y that would need to be sacrificed.
• Calculate the cost of increasing production of good X from 10 to 20 units, as measured in the amount of good
b. If Athletic Country currently produces 300 bats and 300 rackets, wha
Y that would need to be sacrificed.
the opportunity
• Calculate the cost of increasing production cost
of good X from of30
20 to anunits,
additional 100 bats?
as measured in the amount of good
wing combinations of bats and rackets produced by the Athletic
Y that would need to be sacrificed.
he graph below. Plot all points and connect them with a smooth
• What happens to the opportunity cost as the production of good X increases?
c. Why does the additional production of 100 bats in number 2 above c
4. a greater tradeoff than the additional production of 100 bats in num
Bats Rackets
above?
0 420
100 400
200 360
300 300 d. Suppose the Athletic Country is producing 200 bats and 200 rackets.
400 200 Good X many additional bats could they produce without giving up any rack
500 0 How many additional rackets could they produce without giving up a
Answer the following questions: bats?
• If Athletic Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional
100 bats?
e. Is the production of 200 bats and 200 rackets efficient? Explain.
• If Athletic Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional
100 bats?
• Is the production of 200 bats and 200 rackets efficient? Explain.
Shift in Production Possibilities Curve
Shift in PPC/PPF

Consumption
Goods
Bats
A

Capital Goods
The above PPC/PPF shows the available trade-offs between consumption goods and capital goods. Suppose two
countries face this identical production possibilities frontier.
7. The above production possibilities frontier shows the available tradeoffs
between consumption goods and capital goods. Suppose two countries fa
this identical production possibilities frontier.
Investment - indicated by a trade-off between the production of consumer goods and capital goods. Investment
results if society moves along the production possibilities curve, producing more capital goods and fewer consumption
goods.
Answer the following questions.
• Suppose Party Country chooses to produce at point A while Sleepy Country chooses to produce at Point B.
Which country will experience more growth in the future? Why?
• In this model, what is the opportunity of future growth?
• Demonstrate on the graph below the impact of growth on a production possibilities frontier such as the one
shown above. Would the frontier for Sleepy Country shift more or less than that for Party Country? Why?