1. Practicing with a graph and EOCT Questions
Production Possibilities Curve

2. What does “guns” represent?
What does “butter” represent?
When you move from point X to point Y, what are you gaining?
When you move from point X to point Y what is your opportunity cost?

3. Use the following production possibilities curve to answer question number _1___:
1. Which statement is true about the graphic above?
A      Moving from point X to point Y incurs an opportunity cost of guns.
B       At point X, this country is producing more butter than guns.
C      Moving from point X to point Y incurs and opportunity cost of butter.
D      This country does not have to give up any guns to produce more butter.

4. Use the following graph for question #_2__:
2. On the graph above, shifting production from 10 lbs of cheese to
20 lbs of cheese means an opportunity cost of
A      1 gallon of milk.
B       7 gallons of milk.
C      10 pounds of cheese.
D      20 pounds of cheese.

5. key
1. A 2. A