1. What is the opportunity costs of
Going to the movies instead of cleaning your room
Eating a power bar when you are really hungry even though you know it is going to make your stomach hurt
Fixing your car when instead of going on a vacation
buying a coffee instead of gas

2. SHARK TANK - Episode A- Questions the sharks have?
B- Why do the entrepreneurs need the money?

3. Chapter Two
Apply the concept of opportunity cost to any economic choice
Use a Production Possibilities Frontier to demonstrate increasing costs, opportunity cost, economic growth

4. Production Possibility Frontier
A PPF illustrates the different maximum output combinations of goods/services than can be obtained from a fixed amount of resources
Tells us what we can make with what we have.

5. Guns or Butter- PPF Curve Productions Possibilities Frontier
Countries have to decide what to produce
If they produce more military goods, they have fewer resources to devote to consumer goods

6. What does a PPF do?
A PPF is a graph shows what the economy can produce with the present resources
If the economy is at a point on the line, then it is making full use of its resources- efficient
If the economy is not using all its resources efficiently then it will be at a point inside the boundary- underutilization (inefficiency)
It is impossible to be at a point outside the PPF unless there is an increase in the factors of production- economic growth (increase in FOP)

7. $100 dollars

8. Option: Cars Planes A B C D E
Use a PPF chart to graph the information above

9. 175
150
125
Cars
100 75 50 25 5 10 15 20 25 30
Planes

10. List resources scarce in this situation?
About how many cars can be produced when five planes are made?
About how many planes can be produced when 36 cars are produced?
What is the opportunity cost of producing 150 cars?
What is the opportunity cost of producing 5 planes?

11. Steel, Rubber, Plastic
125 16
25 planes
25 cars

12. What is scarce in this example?
About how many silly bandz can be produced when 50 tires are made?
What is the opportunity cost in terms of tires when 7500 bandz are produced?
15000
12500
Bandz
10000
7500
5000
2500 10 25 75
100 30 50
Tires

13. What is scarce in this situation?
Leather
How many Sofa’s can be produced when 300 pairs of boots are made?
175
600
3 sofas
500
Boots
What is the opportunity cost in terms of Boots when 10 sofas are made?
400
300
500 pairs of boots
200
100 1 3 5 10 15 30
Sofas