2.    On PPF curve drawn, identify the following points: i.    Unattainable (label the point U) ii.    Attainable and efficient (label the point AE)    iii.    Attainable and inefficient (label the point AI)

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
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POSSIBILITIES    PINEAPPLES                  MANGOES
A    100    0
B    90    15
C    70    30
D    40    45
E    0    60

1.    Graph the production possibility frontier (PPF) placing pineapples on the X axis and mangoes on the Y axis.                                            
2.    On PPF curve drawn, identify the following points:

i.    Unattainable (label the point U)

ii.    Attainable and efficient (label the point AE)   

iii.    Attainable and inefficient (label the point AI)   

3.    What does the shape of the PPF curve drawn suggest about the opportunity cost of producing ONE more unit of pineapples or mangoes                               

4.    If mangoes harvesting increases from 15 to 30, what is the opportunity cost of harvesting pineapples?                                        

5.    What is the economic significance of choosing to harvest at 25 pineapples and 50 mangoes? 

6.    With the aid of a diagram, explain the effect of a new technological mobile weather station on the Jamaica’s Farm PPF
         

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