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Economic Relationships Graphed

Draw a line to show the relationship between higher coffee prices and increased tea consumption. Similarly, illustrate the correlation between a doctor's fee, work hours, and leisure time on a graph. Plot a production possibilities curve using the provided schedule data. Determine opportunity costs for various scenarios within the economy. Analyze the production possibilities curve to identify if it displays increasing, decreasing, or constant opportunity costs.

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Economic Relationships Graphed

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  1. 1. Draw a line representing the relationship described in each of the following statements: Note: Be sure to identify and label the axes of your diagram. a. Higher prices of coffee make people drink more tea. b. As a doctor’s fee (per hour) increases she works longer hours, but when her fee gets passed a certain level she starts reducing her work hours (so that she can spend more time on the golf course.)

  2. Production Possibilities Schedule A B C D E F Tractors 0 2 4 6 8 10 Wheat 104 100 90 70 40 0 Wheat 2. Plot the production possibilities curve based on the information given in the above schedule. Tractors o

  3. A B C D E F Tractors 0 2 4 6 8 10 Wheat 104 100 90 70 40 0 3. What the opportunity cost of the sixth tractor for this economy? 4. What is opportunity cost of moving from the production mix E to the production mix D? 5. Is the above production possibilities curve exhibiting increasing, decreasing, or constant opportunity costs?

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