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RESPONSE QUESTION ON PRODUCTION POSSIBILITY FRONTER (PPF) Consider the
following data for the harvest of oranges versus the harvest of bananas in Jamaica. JAMAICAS
FARM POSSIBILITIES ORANGES BANANAS A 100 0 B 90 15 C 70 30 D 40 45 E 0 60 1. Graph
the production possibility frontier (PPF) placing oranges on the X axis and bananas on the Y axis.
(8 marks) 2. On PPF curve drawn, identify the following points: i. Unattainable (label the point U)
(1 marks) ii. Attainable and efficient (label the point AE) (1 marks) iii. Attainable and inefficient
(label the point AI) (1 marks) 3. What does the shape of the PPF curve drawn suggest about the
opportunity cost of producing ONE more unit of oranges or bananas. (1 mark) 4. If banana
harvesting increases from 15 to 30, what is the opportunity cost of harvesting oranges? (1 marks)
5. What is the economic significance of choosing to harvest at 25 oranges and 50 bananas? (2
marks) 6. With the aid of a diagram, explain the effect of a new technological mobile weather
station on the Jamaicas Farm PPF (5 marks)

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RESPONSE QUESTION ON PRODUCTION POSSIBILITY FRONTER PPF Co.pdf

  • 1. RESPONSE QUESTION ON PRODUCTION POSSIBILITY FRONTER (PPF) Consider the following data for the harvest of oranges versus the harvest of bananas in Jamaica. JAMAICAS FARM POSSIBILITIES ORANGES BANANAS A 100 0 B 90 15 C 70 30 D 40 45 E 0 60 1. Graph the production possibility frontier (PPF) placing oranges on the X axis and bananas on the Y axis. (8 marks) 2. On PPF curve drawn, identify the following points: i. Unattainable (label the point U) (1 marks) ii. Attainable and efficient (label the point AE) (1 marks) iii. Attainable and inefficient (label the point AI) (1 marks) 3. What does the shape of the PPF curve drawn suggest about the opportunity cost of producing ONE more unit of oranges or bananas. (1 mark) 4. If banana harvesting increases from 15 to 30, what is the opportunity cost of harvesting oranges? (1 marks) 5. What is the economic significance of choosing to harvest at 25 oranges and 50 bananas? (2 marks) 6. With the aid of a diagram, explain the effect of a new technological mobile weather station on the Jamaicas Farm PPF (5 marks)