QUANTITY OF COCONUTS
QUANTITY OF FISH
Use the PPC for Macro Island above to answer the following questions. This question has multiple parts. Make sure that you have answered all parts to maximize your points earned.
Explain in one to two sentences what the PPC is illustrating for Macro Island. Answers must include specific information from the graph. (2 points)
Explain what a move from point B to point A would mean in terms of opportunity cost and production. Answers must include specific information and quantities from the graph. (3 points)
Explain the difference between what points C and D represent on the PPC for Macro Island. Answers must include specific information from the graph. (2 points)
REMINDER - Absolutely no outside resources are allowed to be used on tests. This includes but is not limited to the use of lessons, notes, internet resources, and artificial intelligence. To do so is a violation of the honor code and will be reported.
(7 points)
The PPC for Macro Island is illustrating the trade-off between producing coconuts and fish. It shows the maximum quantity of coconuts and fish that can be produced with the given resources and technology on the island.
A move from point B to point A on the PPC would mean a shift of resources from fish production to coconut production. This would result in an increase in the quantity of coconuts produced, but a decrease in the quantity of fish produced. The opportunity cost of producing more coconuts is the decrease in fish production.
Points C and D on the PPC represent different levels of efficiency. Point C represents a production combination that is feasible but inefficient, as resources are not fully utilized. Point D, on the other hand, represents a production combination that is both feasible and efficient, where all resources are fully utilized to produce the maximum quantity of both coconuts and fish.