Production Possibilities Frontier Worksheet 2

(Use the following table for questions 1-3.)

Production Possibilities for Tuneland Cars Toys 50 0 40 250 30 450 20 600 10 700 0 750 1. The reference table shows the production possibilities for Tuneland. What is the opportunity cost to Tuneland of increasing the production of cars from 30 to 40? a. 200 toys (ANSWER) b. 250 toys c. 450 toys d. It is impossible to tell what the opportunity cost is without knowing production costs for cars and toys. 2. In the table showing the production possibilities for Tuneland, what is the opportunity cost of increasing the production of toys from 450 to 600? a. 30 cars b. 20 cars c. 10 cars (ANSWER) d. It is impossible to tell what the opportunity cost is without knowing production costs for cars and toys. 3. Based on the table showing the production possibilities for Tuneland, what is the most accurate statement about the opportunity cost of producing an additional 10 cars in Tuneland? a. The opportunity cost of an additional 10 cars is 100 toys. b. The opportunity cost of an additional 10 cars is 200 toys. c. It is impossible to determine the opportunity cost of an additional 10 cars. d. The opportunity cost of an additional 10 cars increases as more cars are produced. (ANSWER)

(Use this graph for questions 4-6) NOTE: Point C should be on the frontier

4. On the production possibilities frontier shown, the opportunity cost to the economy of getting 10 additional roller blades by moving from point A to point B is a. 15 bikes. b. 10 bikes. c. 5 bikes. (ANSWER) d. It is impossible to know the opportunity cost without knowing the cost of the resources used to produce the additional roller blades. 5. On the production possibilities frontier shown, the opportunity cost of getting 5 additional bikes by moving from point A to point C is a. 15 roller blades. b. 10 roller blades. (ANSWER) c. 5 roller blades. d. It is impossible for the economy to move from point A to point C. 6. On the production possibilities frontier shown, the opportunity cost of getting 20 additional roller blades by moving from point D to point A is a. 15 bikes. b. 10 bikes. c. 5 bikes. d. 0. (ANSWER)