Course. 1 decade ago. Our online opportunity cost trivia quizzes can be adapted to suit your requirements for taking some of the top opportunity cost quizzes. In Exhibit 2, plot and connect these points to create Athletic Country's production possibilities frontier. Production Possibilities Curve as a model of a country's economy. Comparative advantage and the gains from trade . In the context of a PPF, opportunity cost is directly related to the shape of the curve (see below). Select the correct answer by clicking on the appropriate button. Have a go! Think of Economies of scale. Answered What is opportunity cost and PPF ?? Given the PPF illustrated, what is the opportunity cost of moving from B to A? a. 2. a) 5 coconuts. 5. The following TWO questions refer the diagram below, which illustrates the PPF for a producer of two goods, x and y. If the shape of the PPF curve is a straight-line, the opportunity cost is constant as production of different goods is changing. opportunity cost—choosing to do one thing prevents us from having the opportunity to do another. Im looking through my book and i see that i have made a note on ppfs' i wrote that "to show rising opportunity cost we must assume maximum efficiancy plus factors of production are not perfectly reallocateable" and next to ithe ppf diagram i noted "we used the best facotrs first" I understand that it has to be max. c. Opportunity cost - to gain more of a good, something else must be given up. Which of the following statements is TRUE? Why does Opportunity Cost vary along a PPF Gradient? If Athletic Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional 100 bats? Products that have an opportunity cost 6. Exhibit 7 b. For example, given a set of scarce resources, in order to produce additional “butter,” a society has to give up the opportunity to produce some “guns.” As you can see, to move from point A to point B, society gains 40 dozen eggs at a "cost" of 200 cakes of soap, so the opportunity cost of a dozen eggs is 5 cakes of soap (200/40). This is the currently selected item. 4 Answers. Relevance. The opportunity cost of T in country 2 is A=40-5T. Practice: Opportunity cost and the PPC. Now divide both sides by 20 to get: The O.C. The PPF can be used to calculate the opportunity cost of various production decisions. WHen you start production of a product, the average cost and marginal costs are very high. Phelps to Olympians: 'Do what you can control' In leaked recording, Biden gripes about activist slogan tonushka tonushka 29 minutes ago Economy Secondary School +5 pts. Use the space below to answer the following question: ... the opportunity cost of increasing production of Good A from 0 units to 1 unit is the loss of _____ unit(s) of Good B. b) 10 fish. A. Opportunity cost and production possibilities Juanita is a skilled toy maker who is able to produce both trucks and puzzles. University. Get help with your Production–possibility frontier homework. 3 tomatoes; C. 5 tomatoes; D. 8 tomatoes; E. the slope of the PPF; Correct Answer: A. opportunity costs of each intervention to be compared. Quiz Questions and Answers: Opportunity Cost and PPF Lena and Jess are roommates. Based on the PPF in the figure, the opportunity cost of producing the seventh carrot is. Log in. The answer is economic models. The opportunity cost of 20 wood is 10 food, or the OC of 20 wood = 10 food. Free goods j. This economy’s PPF is linear between each of the points given in the table (thus, the PPF is linear between points A and B, linear between points B and C, but not linear between points A and C). And here's a quick question for you. The following TWO questions refer the diagram below, which illustrates the PPF for a producer of two goods, x and y. In fact, such a movement along the PPF illustrates one of the most important concepts in microeconomics we've already briefly touched upon, the concept known as opportunity cost. The PPF for country 1 is 10A+30T=600 and country 2 is 30A+150T=1200 So the opportunity cost of T in country 1 is A=60-3T. Production levels within the PPF are not attainable . Opportunity cost h. Human made resources 9. Think about what happens to the opportunity cost of TLs—measured in units of yoga lessons (“YL”)—as the amount of resources devoted to producing TLs increases. Although the concept of opportunity cost is funda› mental, incorrect conclusions can result from difficul› ties in applying the concept. c) 5/10 fish d) 10/5 coconuts. Also known as PPC. He has over twenty years experience as Head of Economics at leading schools. This question does precisely that! Your score is neither recorded nor transmitted to your instructor. Practice Questions to accompany Mankiw & Taylor: Economics 2 a. Join now. As you rproduce more, you … Question: An Opportunity Cost: Multiple Choice Is An Unavoidable Cost Because It Remains The Same Regardless Of The Alternative Chosen Requires A Current Outlay Of Cash. Economic goods i. STRAIGHT LINE PPF AND CONSTANT OPPORTUNITY COST . For the equation TL = 25000 - (YL)2 /1000 the derivative d(TL)/d(YL)— the amount of TLs you tradeoff by changing the number of YLs—is - (YL)/500. of 1 wood =10/20 food= .5 food. 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