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Boys and cows… To the frontier

Boys and cows… To the frontier. What is Tom’s opportunity cost (OC) for producing 1 book? Nicole’s OC for 30 books?. Efficiency - Production possibilities frontier - Underutilization - Impossible-.

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Boys and cows… To the frontier

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  1. Boys and cows… To the frontier

  2. What is Tom’s opportunity cost (OC) for producing 1 book? Nicole’s OC for 30 books?

  3. Efficiency - • Production possibilities frontier - • Underutilization - • Impossible-

  4. All of Aunt Paola’s time is spent building sand castles and Lego castles. If you plot sand castles on the Y-axis and Lego castles on the X-axis, what is the impact of the invention of magnetic Legos (much easier to build with) on Aunt Paola’s Production Possibility Frontier (PPF)? a. The intersection of the PPF and the Y-axis shifts upward. b. The intersection of the PPF and the X-axis shifts to the right. c. A parallel outward shift of the PPF. d. No change in the PPF. e. Aunt Rachel does not have a PPF.

  5. When economists refer to people making decisions “at the margin” they mean that people • make decisions only if those decisions do not impose a cost. • evaluate how easily a decision can be reversed if problems arise. • always calculate the dollar costs for each decision. • compare the costs and benefits of every decision.

  6. Study your vocab!

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