a. Graph the production possibility frontier (PPF) placing pineapples on the X axis and mangoes on the Y axis. b. On PPF curve drawn, identify the following points: a. Unattainable (label the point U) b. Attainable and efficient (label the point AE) c. Attainable and inefficient (label the point AI) c. What does the shape of the PPF curve drawn suggest about the opportunity cost of producing ONE more unit of pineapples or mangoes
DATA RESPONSE QUESTION ON PRODUCTION POSSIBILITY FRONTER (PPF)
Consider the following data for the harvest of pineapples versus the harvest of mangoes in Jamaica.
JAMAICA’S FARM
|
POSSIBILITIES |
PINEAPPLES |
MANGOES |
|
A |
100 |
0 |
|
B |
90 |
15 |
|
C |
70 |
30 |
|
D |
40 |
45 |
|
E |
0 |
60 |
a. Graph the
b. On PPF curve drawn, identify the following points:
- a. Unattainable (label the point U)
- b. Attainable and efficient (label the point AE)
- c. Attainable and inefficient (label the point
AI )
c. What does the shape of the PPF curve drawn suggest about the
d. If mangoes harvesting increases from 15 to 30, what is the opportunity cost of harvesting pineapples?
e. What is the economic significance of choosing to harvest at 25 pineapples and 50 mangoes?
f. Explain the effect of a hurricane on Jamaica’s Farm PPF, show this on your diagram
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