5/7 Review

Last updated over 5 years ago
1 question
1

  1. It’s a snow day. You decide to spend the day with friends outside. What is one cost and one benefit of this choice?
  2. What is an opportunity cost of choosing to spend the day outside with friends?
  3. What is the marginal cost of spending one more hour with friends?
  4. Create a production possibilities curve for pickles and airplanes. Draw a spot at which resources are efficiently employed (A), one product impossibility (B), and one place where resources are underutilized (C).
  5. A change in fuel technology allows both pickles and airplanes to be produced more cheaply and efficiently. Draw the change and indicate it with an arrow on your PPC
  6. Draw a new PPC for the same 2 products and put a dot at a central point of efficiency. There has been a cucumber blight. Show how this might affect our model.