Production Possibilities Table This is a model called a

Last updated: 1/31/2023

Production Possibilities Table This is a model called a production possibilities table To use it correctly we must establish specific rules We will reduce the whole economy to just two commodities potatoes and tractors We will have the economy using the best known technology and utilize the available resources to the fullest in the production of potatoes and tractors Look over the table notice the various combinations then answer the questions Combinations D Potatoes millions of pounds Tractors in thousands A 54 0 B 52 1 C 49 45 2 3 E 40 4 1 At combination B what is the production of potatoes 2 At combination E what is the production of potatoes F 34 5 G 27 6 H 19 7 tractors tractors 3 What happens to the quantity of potatoes as tractor production increases I 10 8 J O 9 4 As the economy moves from producing tractors at combination B to producing tractors at This is the combination C how much change takes place in potato production opportunity cost or the amount of potatoes that must be sacrificed to produce one 1 more unit of tractors cost sacrifice 5 As tractor production moves from combination C to combination D how much change in potato production takes place 6 Increasing tractor production from combination D to combination E changes potato production by what amount 7 If the amount of potato production given up is called cost as the economy moves to increase tractor he made as tractor production moves from B to C from