Q FUNDAMENTALS IN-CLASS WORKSHEET 1 This question examines the production possibilities of a small country, Millsville. You will construct the production possibilities frontier (PPF) for Millsville and identify its opportunity cost of producing different goods. Millsville can use its limited resources to produce only applesauce and apple juice. Below, you are provided with feasible combinations of applesauce and apple juice that Millsville can produce, and that employ all of Millsville’s productive resources. Applesauce (jars) Apple Juice (bottles) 5 0 4 2 3 4 2 6 1 8 0 10 Task 1: In the graph below, construct Millsville’s PPF. Be sure to place jars of applesauce on the horizontal axis and bottles of apple juice on the vertical axis. Task 2: What is the opportunity cost of an additional jar of applesauce in Millsville? What is the opportunity cost of an additional bottle of apple juice? FUNDAMENTALS IN-CLASS WORKSHEET 2 This question examines the production possibilities of an individual, Nicolas. You will construct the production possibilities frontier (PPF) for Nicolas and identify his opportunity cost of producing different goods. Nicolas can use his limited resources to produce only rings and necklaces. Below, you are provided with feasible combinations of rings and necklaces that Nicolas can produce, and that employ all of his productive resources. Rings Necklaces 0 8 3 6 6 4 9 2 12 0 Task 1: In the graph below, construct Nicolas’ PPF. Be sure to place rings on the horizontal axis and necklaces on the vertical axis. Task 2: What is the opportunity cost of producing an additional ring for Nicolas? What is the opportunity cost of producing an additional necklace? FUNDAMENTALS IN-CLASS WORKSHEET 3 This question examines the production possibilities of two individuals, Pedro and Jessica. You will construct the production possibilities frontier (PPF) for both individuals, identify each individual’s opportunity cost of producing different goods, and examine comparative advantages. Pedro and Jessica each have limited productive resources, which they can employ either in the production of pencils or pens. Below, you are provided with the feasible combinations of pencils and pens that each individual can produce, and that employ all of their productive resources. Task 1: In the graph below, construct Pedro’s PPF in blue ink. Be sure to place pencils on the horizontal axis and pens on the vertical axis. Task 2: In the graph above, construct Jessica’s PPF in red ink. Task 3: What is the opportunity cost of an additional pencil for Pedro? Task 4: What is the opportunity cost of an additional pen for Pedro? Task 5: What is the opportunity cost of an additional pencil for Jessica? Task 6: What is the opportunity cost of an additional pen for Jessica?