Using pushups on one axis and homework problems on the other, plot a straight line PPC. Choose your answers to the questions and click 'Next' to see the next set of questions. 3. Select the correct answer by clicking on the appropriate button. When discussing the answers, consider these points: (A) The law of increasing opportunity cost is hard for students to grasp. Apply scarcity and opportunity cost to a num-ber of everyday situations. Define the concept of opportunity cost. He has over twenty years experience as Head of Economics at leading schools. 1. One copy of Planning the Prom, Activity 1, for each student. We live in a world of limited resources, but we seem to have unlimited wants. Grades: 9 th, 10 th, 11 th, 12 th. To describe the concept of the production possibilities frontier, assume that we live on an island that has only two cities (Lake and Desert), and two industries (cars and airplanes). This represents increasing opportunity cost. 2. Subjects: Business, Economics . The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. It is important to learn to make good economic choices, or decisions. Explain the economic problem of scarcity. This question does precisely that! Practice Questions 2 - Opportunity Cost and Trade Practice question with answers. Scarcity, Opportunity Cost, and Production Possibilities Curves The primary economic problem facing all individuals, families, businesses, and nations is the scarcity of resources: There simply are not enough resources to satisfy the unlimited wants for goods and services. Scarcity necessitates choice. If opportunity cost is constant or increasing for one of the goods, it is constant or increasing respec-tively for both goods. Scarcity, Opportunity Cost and PPC practice activity. Activity 2 pro-vides practice at determining absolute and compar-ative advantage. Concepts: Opportunity Cost Scarcity Capital Goods Choice Consumer Goods Communism Content Standards and Benchmarks (1, 3 and 15): Standard 1: Productive resources are limited. 4. Your score is neither recorded nor transmitted to your instructor. The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost. The students will then have the opportunity to practice the newly learned content through a simulation. Record that number. Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice". Then, solve as many homework problems as possible in 30 seconds. Directions This quiz contains 15 multiple choice questions. Objectives 1. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. D)substitution cost. 1. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. The PPC is "bowed outward" (concave) from the origin. 2. Circle the opportunity cost. It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. Dayne Lee. Their answers will be contributed as a group discussion. C)marginal benefit. Have a go! The concept of opportunity cost and associated tradeoffs may be illustrated with a picture. University. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. Learn vocabulary, terms, and more with flashcards, games, and other study tools. What is the opportunity cost of moving from point A to point B? Benchmarks: Whenever a choice is made, something is […] Joey wants to go to the corner store. All the points on the PPC represent productive efficient levels of production. In each activity in this unit, students use play dough to help them learn the economic concepts. D)an opportunity cost 40) 41)The term used to emphasize that making choices in the face of scarcity involves a cost is A)utility cost. In most cases, economic resources are not completely available at all times in unlimited numbers, so companies must make a choice about which resources to use during production. The opportunity cost represents the alternative given up when … Simple and easy worksheets to practice production possibility curve (PPC). TAGS: resources, scarcity. [3 marks] Three points to be covered: Explanation could include: there are limited/finite resources and unlimited wants. Joey and Taniesha arrive to school thirty minutes early. SCARCITY AND OPPORTUNITY COST PRACTICE ACTIVITIES Directions: For each of the following examples, underline what is scarce. Go over Activity 2. Opportunity cost is measured by the slope of the PPC (the change in along y-axis divided by the change along the x-axis). Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others. Objective SWBAT to analyze opportunity cost and socio- economic goals of the United States in order to practice answering multiple choice questions. (C) The opportunity cost of increasing production of Good A from two units to three units is the loss of two unit(s) of Good B. The slope of a straight-line PPC is equal to the opportunity cost – specifically, the opportunity cost for the good measured on the horizontal axis in terms of the good measured on the vertical access . Learn vocabulary, terms, and more with flashcards, games, and other study tools. As production of food increases, production of clothing declines and vice versa. High schoolers practice the economic concepts of scarcity and opportunity cost. Two class periods: Day One - Activity 1 Day Two - Activity 2 and Assessment. (B) … Economic Principles (ECO10004) Uploaded by. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. This is enough to give students practice without creating disengagement and works well for a college prep or AP level economics course. Lesson Abstract: 1. This quiz has around twelve questions of the same topic; choose the correct answer. Taniesha wants to see if any of her teachers are at school early for extra help. Economics: Opportunity Cost and Scarcity 1. Scarcity, Opportunity Cost and PPC practice activity Welker Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion. Key Takeaways. B)scarcity. 5. Scarcity, Opportunity Cost and the Production Possibilities Curve. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Course. Start studying Economics chapter 2 (Scarcity and opportunity costs). Apply the concept of opportunity cost to a pro-duction possibilities curve. _____ Production Alternative_____ Try this: Do as many pushups as you can in 30 seconds and record the number. and services, productive resources, scarcity, opportunity cost, trade-offs, and price. The next best thing that is not chosen is called a person’s opportunity cost. limited resources are used to satisfy unlimited wants. After three hours, the additional benefit from staying an additional half-hour would likely be less than the additional cost. C)accounting cost. Scarcity, Choice, and the Production Possibilities Curve Chapter Exam Instructions. Society’s wants are unlimited, but ALL resources are limited (scarcity). B)opportunity cost. 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