Simple ppf worksheet

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Simple ppf worksheet

  1. 1. PPF and Opportunity cost questions<br />Maximum possible combinations of food and clothing that can be produced in a given period of time:<br />Units of food (millions)Units of clothing (millions)8.00.07.02.26.04.05.05.04.05.63.06.02.06.41.06.70.07.0<br />Draw a PPF for this economy.<br />What is the opportunity cost of moving from producing 4 million units of food to 5 million units of food? __________________________________________<br />What is the opportunity cost of moving from producing 6 million units of clothing to 7 million units of clothing? ________________________________<br />What is the opportunity cost of switching production from 0 units of food to 2 million units of food? _____________________________________________<br />What shape is the PPF curve in this example? Explain in your words why it is this shape. ______________________________________________________<br />_______________________________________________________________<br />In what circumstances would the PPF be a straight line? _________________<br />_______________________________________________________________<br />Could a PPF be bowed towards the origin? Explain your answer.___________<br />_______________________________________________________________<br />__________________________________________________________________________________<br />

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