Graph Exploration 1-30-23 Opportunity Cost and the Production Possibilities Curve (als ©) Directions: Follow along to al lied directions. Then, youl wse he graph you drew to answer | the questions. You can also refer to pages 16-17 nthe textbook to lp you with the coneps Fel freeto draw and mark up the graph with highligh or colors hep. Ay | a In-Clas Steps: | oe 1, Label the ¥eaxe (vera) with “Quantity of sCLESea caffe produced” and the X-axis (orzo) with i Quant of sugar produced” \ flee § cI gtr 6 2. Drawa curved line fom the Y-axisto the 5 preveed [> ; Xavi | 4 sea I]. Pls pons on that ure preferably onthe { ; [| arid tines 50 you can use friendly numbers. [ IN , | Tr i TS gf 4. Draw seria and horizontal ines to connect PT > iepimuietensns sug produced ‘The graph ws hav just rete is called the Production Possibilities Curve. This tine represents al possible combinations of goods anor services an economy can produce when all prodvct 5. Name a pint that you plod. Writ isan (x, coorinate, How much ugar and coffee can be produced a that point? Eadie sep Fibs of coffee, 6 Now plata point on he inside ofthe space erated by the curve. Are all resources to produce sugar or cole beng used to hi fullest potent n this spoce? Why or why not? 13) the point Joes no} _foTl on te possihi ilies curve CY ON soy, 1ON coffee 7. Plota point on the outside of he space created bythe eure, sible? Why or why not? resources are fly used, 0 S 30 suHere is what your graph should look like: vv Passiiities Cove Product é Quinkty A coffee predvcedl 5 we uunkthy of ger guohaced 8. Why might a country make the economic de o! Note that some values are diferent (especially hose labled onthe axis), but overall ‘the shape shouldbe the same See how there are 3 points onthe curve (B.D.0), | point inside the curve (A), and I point ouside the curve (X). 48} 30 sugar 30 coffee) B¥ (10 ugar 65 cofee) 65 sugar, 1D coer) D =(50 spar, 50 coffe) X = doesnt exist to choose a point om the eure a opposed Thera using lhe fullestpotential af C inden) AL Recall what we'e leamed about opportunity cost Opportunity Cost isthe cost ofthe next | best ltemative use of resources when one choice is made over another. 9, Let's considera shi rom point B to point C onthe graph above, What isthe opportunity ost of moving from B to C? To rephrase the question, what are the trade-ofl, or benefits _auar ging op? in Coie ieee torneo pins) the Benefits give bec sist thy pavads of suga¢ ineene while fhe pornds of coffer dererse,Graph Exploration Opportunity Cost andthe Production Possibilities Curve Directions: Follow along to al listed directions. Then, you'll use the graph you drew to answer the questions. You can als refer to pages 16-17 in the textbook to help you with the concepts. Fee ree to draw and mark up the graph with a highlighter o colors to help. In-Class Steps 1. Label the Yani (vertieal) with “Quantity of coffe produced” andthe X-axis (horizontal with “Quant of sugar produced” 2, Drawa curved ine fom the Vaxis tothe X-axis 3. Plt 3 points on that cure, preferably on the ‘id Lnes so you can use friendly numbers. i } py & Deon sealant sto comes | OES e SET ae TGP the pinsiote Yad ans pret | ‘The graph we have just eetedis called he Production Possibilities Curve. Thine repesensal possible combinations of goods andor services an economy ean produce when all productive resources ae fully used 5, Name pint hat you plot. Wee itas an (2,3) coon, How much sugar and cofice «an be produce a that pin? (14): ds (oe 6 Now plot pin onthe ne of he pace eet by he curve al sources to poduce supa or cofe bing used oh let potential nhs pace? Why or why nt? ie ON tigen Cate ty Wah 7. Plot.a point onthe ouside of the space created bythe curve. Isa point lke this even possible? Why or why not? © licua cog‘ere is what your raph should ook ike: ssbyhties Cove ‘Not that some values are dbieren (especialy those labeled on he axis), ut overall, 3 ‘the shape should be the same. 0 eit ete g carve (B.0) | poi inside the E ‘curve (A), and I point outside * cameo ¢ A® (30 sugar, 30 coffee) i oom ast) 0 C= (65 sugar 10 coffee ) D =(80:pur, SOcaice) annihy eb gee prolced alte 8. Why might country make the economic desion to choose a pont on he curve as opposed to a point onthe inside ofthe curve? Recall what we've eamed abou opportunity cost Opportunity Cost is ihe cost of he next best aeratve use of resources when one choice is mae over another. 9, Le’ conside shila pia! Bt pint Con the graph above. What isthe opptuity «ost of moving from B to C? To rephrase the question, what are the tade-os,o benefits youare giving up? (lin: Caeuate the difrene between the two points.) Yer 01 NO oGeee gerduaca in Cryer VE Sage etc 10m