1.  Illustrates production choices  Assumptions:  Full employment  Fixed resources  Fixed technology  Two goods ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO61

2. LO5 Type of Product Pizzas (in hundred thousands) Industrial Robots (in thousands) Production Alternatives ABCDE 109740 01234 Plot the Points to Create the Graph… 1-2 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO62

3. LO5 The law of increasing opportunity costs makes the PPC concave. 1-3 Pizzas Industrial Robots Attainable 0 1 2 3 4 5 6 7 8 9 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Unattainable A B C D E U ©2013 McGraw-Hill Ryerson Ltd.Chapter 1, LO63

4. LO5 a b c d e MB = MC MC MB 15 10 5 0 1 2 3 Quantity of Pizza Marginal Benefit & Marginal Cost 1-4 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO64

5. Type of Product Pizzas (in hundred thousands) Industrial Robots (in thousands) Production Alternatives A'B'C'D'E' 1412950 02468 LO6 1-5 ©2013 McGraw-Hill Ryerson Ltd.Chapter 1, LO75

6. LO6 Pizzas Industrial Robots Attainable 0 1 2 3 4 5 6 7 8 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Unattainable A B C D E Economic Growth Now Attainable A’ B’ C’ D’ E’ 1-6 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO76

7. LO6 Goods for the Present Goods for the Future Goods for the Present P F Current Curve Current Curve Future Curve Future Curve Presentville Futureville 1-7 ©2013 McGraw-Hill Ryerson Ltd. Chapter 1, LO77