Activity 2.

PPF/FPP

Isabel is a high school student who divides her twenty hours of

study between the subjects that cost her the most: Economics (e)
and English (a). According to the experience she has acquired,
Isabel has reflected in Table 2.1 the various possible combinations,
measured in terms of academic grades.

a) Graphically represent the point-to-point FPP.

b) At which points in the graph does Isabel achieve her potential,

that is, is she efficient?

c) What should be interpreted if instead of reaching the FPP points,

Isabel stays at point Z (a 5 in Economics and a 3 in English)?

d) According to the FPP, is it possible for Isabel to achieve point H

(an 8 in Economics and a 5 in English)?

e) Relate Isabel’s FPP to the following concepts: resource scarcity,

opportunity cost and potential production.