Production Possibility Curves

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Draw a production possibilities curve that shows a constant opportunity cost. Why do these two goods have a constant opportunity cost? (Answer in a text box below the graph). Also show two different allocatively efficient points. Why would a society choose one point over another?

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Draw a production possibilities curve for two goods that shows an increasing opportunity cost. Why do these goods have an increasing opportunity cost? On your graph include each of the following points: a productively efficient point, an impossible or unattainable combination of production, and a combination that shows unemployment.

For all of the next 3 problems assume that the two goods produced are pizza and robots. Draw a ppc showing changes for the situation that is described.
-New robot making technology

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-New robot making technology

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-Decrease in the demand for pizza

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-Mad cow disease kills 75% of cows

For all of the next 4 problems assume that the two goods produced are consumer goods and capital goods. Draw a ppc showing changes for the situation that is described.

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-Destruction of oil refineries resulting from a hurricane in the Gulf of Mexico

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-Faster computer hardware

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Many workers unemployed

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Draw a production possibilities curve that shows a constant opportunity cost. Why do these two goods have a constant opportunity cost? (Answer in a text box below the graph). Also show two different allocatively efficient points. Why would a society choose one point over another?

-New robot making technology

-Decrease in the demand for pizza

-Mad cow disease kills 75% of cows

-Destruction of oil refineries resulting from a hurricane in the Gulf of Mexico

-Faster computer hardware

Many workers unemployed

Significant increases in education