Product Possibilities Curve Worksheet

Here is the production possibilities table for war goods and civilian goods:

______Production Alternative______

Types of Production A B C D E

Automobiles 0 2 4 6 8

Missiles 30 27 21 12 0

a. Draw a production possibilities curve for automobiles and missiles using the data above.

b. Label the points where the economy would be efficient (A), underutilized (B) and unattainable
(C).

c. What is the opportunity cost of moving from point A to point B?

d. What is the opportunity cost of moving from point B to point C?

e. What is the opportunity cost of moving from point D to point E?

What are the two things that can cause a PPC to shift?

Economists often say “There is no such thing as a free lunch”; how does this relate to opportunity
costs?
NAME:___________________________________ Period:________ Date:__________
Factors of Production
After reviewing the factors of production complete the following activities.
Read each item AND decide which of the four factors of production it would be classified as:

Land / Natural Labor / Human Physical Capital

Capital
School Buildings
Custodian
Bus
Computer
Teachers
Principal
Ball Field
Lunch

List the land, labor, capital, and entrepreneur that went into making each of the following
(You can list more than one for each…)

YOUR SHOES
a. Land: ________________________________________________________________________________
b. Labor: _______________________________________________________________________________
c. Capital: ______________________________________________________________________________
d. Entrepreneur: _______________________________________________________________________

iPod
a. Land: ________________________________________________________________________________
b. Labor: _______________________________________________________________________________
c. Capital: ______________________________________________________________________________
d. Entrepreneur: _______________________________________________________________________

Pizza
a. Land: ________________________________________________________________________________
b. Labor: _______________________________________________________________________________
c. Capital: ______________________________________________________________________________
d. Entrepreneur: _______________________________________________________________________

Your Choice:______________________________________________
a. Land: ________________________________________________________________________________
b. Labor: _______________________________________________________________________________
c. Capital: ______________________________________________________________________________
d. Entrepreneur: _______________________________________________________________________

Your Choice: ______________________________________________

a. Land: ________________________________________________________________________________
b. Labor: _______________________________________________________________________________
c. Capital: ______________________________________________________________________________
d. Entrepreneur: _______________________________________________________________________