1. Use the graphs ABOVEto answer the questions below:
Suppose that the graphs show Iraq's the production possibilities curves. Which graph depicts the middle of the war?
a. Suppose that the graphs show Iraq's the production possibilities curves. Which graph depicts the end of the war, beginning of peace?
b. Which graph depicts a technological breakthrough in producing X only?
c. Which graph depicts a technological breakthrough in producing Y only?
d. Which graph depicts an increased use of labor in producing both goods?
2. The following is the production possibilities table for Country X.
Production possibilities
|
|
A
|
B
|
C
|
D
|
E
|
F
|
|
Clothing
|
5
|
4
|
3
|
2
|
1
|
0
|
|
Food
|
0
|
9
|
16
|
21
|
24
|
25
|
If this country is currently producing at alternative C
What is the opportunity cost of producing 1 more unit of food?
What is the opportunity cost of producing 1 more unit of clothing?
What is the opportunity cost of producing at alternate D?
What is the opportunity cost of producing at alternate B?
Is producing 16 units of food and 2 units of clothing possible?
Draw the production possibilities graph from the original table. You may draw the graph freehand, then take a picture of it with a camera or your cellphone, download and attach.
3. Explain how the extreme point on the vertical axis is identified and how the extreme point on the horizontal axis identified when the production possibilities curve is drawn.
4. Is it possible for a person to incur an opportunity cost without spending any money? Post an example with your answer.
5. College athletes often receive the textbooks necessary for their courses without having to pay for them. Are these books for the athletes really free?
6. You and a friend decide to spend $80 EACH on concert tickets. Each of you alternatively could have spent the $80 to purchase a textbook, a meal at a highly rated local restaurant or several Internet movie downloads. As you are on the way to the concert, your friend tells you that if he had not bought the concert ticket, he would have opted for the restaurant meal, and you reply that you would have downloaded several movies. What is the relevant opportunity cost for you and your friend of the concert ticket that you purchased? Explain briefly in your posting.