Production possibilities curves

Grade 12 Social Studies Worksheet - Building Confidence

Circle the best answer.

1. Read this first

   Use this

   Cards A to C on a bakery's choices (all made up). Card A, "The bakery's day (made up)". Who made it: written for this sheet. Table, columns Point | Loaves | Cakes: A | 0 | 60; B | 10 | 56; C | 20 | 48; D | 30 | 36; E | 40 | 20; F | 50 | 0. Note: at every point the bakery uses all its ovens and workers. Card B, "Two more plans (made up)". Who made it: written for this sheet. Plan G: 30 loaves and 30 cakes. Plan H: 40 loaves and 30 cakes. Card C, "Why costs rise (in our words)". Who made it: written for this sheet. Summary in our words, not a quotation: Workers and ovens are not equally good at both goods. The first ones moved to a new good are the ones best suited to it, so each further move costs more.

2. 1.

   Pia reads card A. The bakery moves from point C to point D. What does the extra 10 loaves cost?

   • 36 cakes, since 36 is the number of cakes the bakery still makes at point D
   • 4 cakes, since the first 10 loaves cost 4 cakes and each 10 loaves costs the same
   • 12 cakes, since cakes fall from 48 to 36 as loaves rise from 20 to 30
   • 10 cakes, since the bakery gives up one cake for each extra loaf it makes
3. 2.

   Luz places Plan G (30 loaves, 30 cakes) against card A. Which description is right?

   • On the curve: Plan G uses each oven and worker, since 30 loaves is one of the points
   • On the curve: 30 loaves and 30 cakes are both numbers that appear in the table
   • Beyond the curve: Plan G asks for more than the bakery can make with its ovens
   • Inside the curve: point D makes 36 cakes with 30 loaves, so Plan G wastes resources
4. 3.

   Tala reads cards A and C. Which claim do they support best?

   • The cost of cakes rises because the ovens wear out as they are used more
   • Each extra 10 loaves costs fewer cakes than the last, since workers get better with practice
   • Each extra 10 loaves costs more cakes than the last, as card C's unequal workers would explain
   • Each extra 10 loaves costs the same number of cakes, since each is the same size step

5. Use this

   Cards A and B on a new oven (both made up). Card A, "Before the new oven (made up)". Who made it: written for this sheet. Table, columns Loaves | Most cakes possible: 0 | 60; 10 | 56; 20 | 48; 30 | 36; 40 | 20; 50 | 0. Card B, "After the new oven (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: The oven makes cakes faster and does not help with loaves. Table, columns Loaves | Most cakes possible: 0 | 75; 10 | 70; 20 | 60; 30 | 45; 40 | 25; 50 | 0.

6. 4.

   Ari reads cards A and B. Which statement describes the change the new oven makes?

   • The most cakes rises from 60 to 75, but the most loaves stays at 50
   • The most loaves rises from 50 to 75, but the most cakes stays at 60
   • Both the most cakes and the most loaves rise, since a new oven helps the baking of each good
   • The bakery moves along its old curve to make more cakes and fewer loaves
7. 5.

   The bakery wants 30 loaves and 40 cakes. Noah compares cards A and B. When is that possible?

   • Not before, since the most cakes at 30 loaves was 36; yes after, since it is now 45
   • Yes before and after, since 30 loaves is one of the points in both tables
   • Not before and not after, since 40 cakes is more than the table shows at 30 loaves
   • Yes before, since 40 cakes appears in the table; not after, since the oven changed the numbers
8. 6.

   A baker wants only loaves. Esme compares cards A and B. Which statement is right?

   • That baker loses, since the oven takes workers away from making loaves at the bakery
   • That baker gains nothing at 50 loaves, though a bakery making both goods does
   • That baker gains, since a new oven makes baking of each kind cheaper for the bakery
   • The bakery gains at points with no loaves, so mixed plans do not gain from the oven

9. Use this

   Cards A and B on building for later (both made up). Card A, "Two countries (made up)". Who made it: written for this sheet. Table, columns Country | Factories built this year | Consumer goods this year: R | 20 | 80; S | 10 | 90. Card B, "A rule (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: Each country could make at most 100 consumer goods this year if it built no factories. Every factory built this year adds 1 to the most consumer goods the country can make in each later year.

10. 7.

    Kira reads cards A and B. Which country makes more consumer goods this year, and which can make more later?

    • R makes more now and later, since building factories adds to goods in the same year
    • S makes more now, 90 against 80; R can make up to 120 later, against S's 110
    • S makes more now and later, since 90 is greater than 80 and S built fewer factories
    • R makes more now, 80 against 90; S can make up to 120 later, against R's 110
11. 8.

    Milo reads card B. By how much does R's choice change its later maximum compared with S's?

    • It is 10 lower, because R gave up 10 consumer goods this year to build the factories
    • It is 10 higher, because R built 10 more factories, each adding 1 to the later maximum
    • It is 20 higher, because R built 20 factories and S built zero, which makes the gap 20
    • It is the same, because both countries could make 100 goods without any factories
12. 9.

    Jun wants to say whether R chose better than S. Which missing fact matters most?

    • How much R's people value goods later compared with goods now
    • How many people live in R compared with S, since larger countries should build more
    • How many factories each country built, which card A already gives
    • What the factories cost in dollars, since the cards give goods and not dollars
13. 10.

    Ren writes one claim from cards A and B. Which claim do they support best?

    • S's choice gives up 10 consumer goods now to raise its later maximum by 10 more than R's
    • R's choice costs nothing, since it adds factories and keeps its goods at 80
    • R's choice makes R richer in each year, since factories add to output in each later year
    • R's choice gives up 10 consumer goods now to raise its later maximum by 10 more than S's