Materials - If you are working offline. _____ Production Alternative_____ 4. All the points on the PPC represent productive efficient levels of production. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. (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. Benchmarks: Whenever a choice is made, something is […] limited resources are used to satisfy unlimited wants. Have a go! He has over twenty years experience as Head of Economics at leading schools. Swinburne University of Technology. The concept of opportunity cost and associated tradeoffs may be illustrated with a picture. Geoff Riley FRSA has been teaching Economics for over thirty years. Simple and easy worksheets to practice production possibility curve (PPC). 1. Activity 2 pro-vides practice at determining absolute and compar-ative advantage. 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. and services, productive resources, scarcity, opportunity cost, trade-offs, and price. C)marginal benefit. Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice". 1. A PPC will help you see the opportunity cost of your decisions. Key Takeaways. One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. We live in a world of limited resources, but we seem to have unlimited wants. Society’s wants are unlimited, but ALL resources are limited (scarcity). University. Scarcity, Opportunity Cost and PPC practice activity. Time required. They imagine creating their own businesses and brainstorm what they need to … Choose your answers to the questions and click 'Next' to see the next set of questions. Start studying Economics chapter 2 (Scarcity and opportunity costs). Every time someone makes a choice, there are other things that are not chosen. Concepts: Opportunity Cost Scarcity Capital Goods Choice Consumer Goods Communism Content Standards and Benchmarks (1, 3 and 15): Standard 1: Productive resources are limited. Explain the economic problem of scarcity. This represents increasing opportunity cost. Define the opportunity cost of a decision as the most valued discarded option; Analyze trade-offs involved in making spending decisions. Therefore, people cannot have all the goods and services they want; as a result, they must choose some things and give up others. If opportunity cost is constant or increasing for one of the goods, it is constant or increasing respec-tively for both goods. Circle the opportunity cost. 2. 4. Dayne Lee. Lesson 2: Opportunity Cost Big Ideas of the Lesson Because of scarcity, people have to make choices. For example, a student may have to choose between doing A levels and going for a diploma right after finishing O levels. Lesson Abstract: Objectives 1. The basic economic problem is one rooted in both the natural world and in human greed. B)opportunity cost. Quiz on the PPC, Opportunity Cost, and the Gains from Trade. Then, solve as many homework problems as possible in 30 seconds. Apply the concept of opportunity cost to a pro-duction possibilities curve. D)opportunity cost. Go over Activity 2. Define the concept of opportunity cost. [3 marks] Three points to be covered: Explanation could include: there are limited/finite resources and unlimited wants. Due to scarcity, choices must be made. Select the correct answer by clicking on the appropriate button. Practice Questions 2 - Opportunity Cost and Trade Practice question with answers. As production of food increases, production of clothing declines and vice versa. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion. Subjects: Business, Economics . 5. Calculate the relative opportunity costs. 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. 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. Answers Included Using pushups on one axis and homework problems on the other, plot a straight line PPC. What is the opportunity cost of moving from point A to point B? The concept of scarcity, choice and opportunity cost can be shown in many ways, at different levels. C)accounting cost. 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). Economics: Opportunity Cost and Scarcity 1. 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. 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 . This PDF download is great practice for students' understanding of the ins and outs of the PPC. Academic year. What is the opportunity cost of moving from point D to point E? Scarcity, Opportunity Cost and the Production Possibilities Curve. 41) 42)The loss of the highest-valued alternative defines the concept of A)entrepreneurship. B)scarcity. The PPC is "bowed outward" (concave) from the origin. Opportunity cost is measured by the slope of the PPC (the change in along y-axis divided by the change along the x-axis). SCARCITY AND OPPORTUNITY COST PRACTICE ACTIVITIES Directions: For each of the following examples, underline what is scarce. Your score is neither recorded nor transmitted to your instructor. Joey wants to go to the corner store. Directions This quiz contains 15 multiple choice questions. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. Production Possibilities Curve – a graph that shows alternative ways to use an economy’s resources – does not show consumer satisfaction. On which activity do you have … Course. TAGS: resources, scarcity. These worksheets are designed to quickly understand the PPC which explains efficiency, scarcity, and opportunity cost. 2. Scarcity, Choice, and the Production Possibilities Curve Chapter Exam Instructions. 5 Key Economic Assumptions. This question does precisely that! Product Possibilities Curve Practice . What is the opportunity cost of moving from point B to point C? (D) This is an example of (constant / increasing / decreasing / zero) opportunity cost per unit for Good A. Their answers will be contributed as a group discussion. Two class periods: Day One - Activity 1 Day Two - Activity 2 and Assessment. might outweigh the additional cost (the opportunity cost). D)substitution cost. Objective SWBAT to analyze opportunity cost and socio- economic goals of the United States in order to practice answering multiple choice questions. Law of increasing opportunity cost – when the production of a particular good increases, the opportunity cost of producing an additional unit rises. High schoolers practice the economic concepts of scarcity and opportunity cost. Please use your own piece of paper to complete this practice activity. Scarcity is also referred to as "paucity." In each activity in this unit, students use play dough to help them learn the economic concepts. Unformatted text preview: Welker’s Wikinomics practice activities 1.0 Introduction to Economics Scarcity, Opportunity Cost and PPC Introduction: Assume the US government has discovered it has a surplus in its budget of $100 billion.One party wishes to invest this surplus in new resources for education, while the other wishes to invest in new defense infrastructure. Define scarcity and opportunity cost. One copy of Planning the Prom, Activity 1, for each student. For an individual, it may involve choosing the best from the choices available. Start studying Scarcity, Choice and Opportunity Cost. The next best thing that is not chosen is called a person’s opportunity cost. The students will then have the opportunity to practice the newly learned content through a simulation. Students learn how to graph a PPC (aka a PPF), how opportunity cos . The opportunity cost represents the alternative given up when … Choosing one option means the other option has to be forgone. The PPC is a economic framework that can be used to illustrate concepts of scarcity, choices and opportunity costs. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Apply scarcity and opportunity cost to a num-ber of everyday situations. 2017/2018 Record that number. Economic Principles (ECO10004) Uploaded by. When discussing the answers, consider these points: (A) The law of increasing opportunity cost is hard for students to grasp. Try this: Do as many pushups as you can in 30 seconds and record the number. (B) … Scarcity and opportunity cost represent two interlinking concepts in economics as companies must often choose among scarce resources. Every choice has a cost (a trade-off). in the process choices have to be made which leads to an opportunity cost. Taniesha wants to see if any of her teachers are at school early for extra help. After three hours, the additional benefit from staying an additional half-hour would likely be less than the additional cost. This is enough to give students practice without creating disengagement and works well for a college prep or AP level economics course. After you have finished the quiz, click on the Grade my Quiz button at the bottom of the page. 42) This quiz has around twelve questions of the same topic; choose the correct answer. Joey and Taniesha arrive to school thirty minutes early. Construct production possibilities curves using hypothetical data. Grades: 9 th, 10 th, 11 th, 12 th. Examiners like testing the relationship between the shape of a PPF and the concept of opportunity cost. Welker. 3. 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