Production Possibilities Curve- Macro Topic 1.2 (Micro Topic 1.3) 

I like these tests. I have 1 wrong and this is good that I know. From these tests I can accurately measure where I need to study more. I need to study more on the Production Possibilities Curve and opportunity cost . I am not an Economics student because economics is more of an accounting job in my country. I do however, really like the videos and content you produce and will continue to learn. I need to understand why 40 belts aren't produced and 15. 1) A 2) C 3) C 4) E Ok I rewatched this . I understand . At max productivity , producing 2 coats would equate to 85 belts. The cost of making the third coat is 15 belts at that point because it drops to 70 for the total possible produced belts. The cost of producing another coat after that would be an additional 30 belts.

@@SourceCodeDeleted > The cost of producing another coat after that would be an additional 30 belts. yep, that's correct

4th answer has to be option D

@@sajidkhan639 re-read the question; it is asking which is true EXCEPT

I was surprised by #3. Couldn't the combination be outside the PPC if there is a new technology introduced?

#HookEm!

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@@noorykorky5056did you get in? I want to go to ut austin

Your AP credit didnt transfer over?

@@bromine4570 I needed a 4 on both ap tests to get credit and got a 3 on both lol. Good news is I passed both macro and micro over these past two semesters in college!

@@salilbhatnagar congrats!

@@salilbhatnagar Any tips for the ap macro test? I take it in 2 days

Bearded Oranges well I would say study the key terms and concepts. I remember last year on macro so many questions had to do with interest rate(I believe) and I was totally unprepared for that lol.

Sure I agree

Opportunity cost increases as more goods are produced because there in order to produce video games you are recollecting fewer cherries and the increment on "non collected " cherries is an increase in the opportunity cost. Option B states that the increase in production DECREASES opportunity cost, and that is INCORRECT.

according to the law of increasing opportunity cost, when the production of 1 good increases, the opp cost of the other good increases as well

@@1234567890alejandro Hi For your response, may I assume that the bowed curve indicates the increase in opportunity cost, for either products?

Teacher learning too great ❤🎉

Ey!! I also have AP econ!! 😁😁

oh wow

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wow

well damn-

godspeed comrade

Same question here for Mr. Clifford! I also agree A-C were true + thought E was true (because of the "combination" keyword; w/ Point W being on the X-axis, it's only producing 1 good so I thought Point X would be the most efficient... is this the correct logic?) also thought D was false

@@allieism From my understanding, I think that as long as the point lies on the curve then the resources are fully utilized, thus the goods are produced EFFICIENTLY by this economy. When considering a COMBINATION of the two goods then you could pick any point that lies on the curve, except when the point lies on either the x-axis or the y-axis. You can place another point on the curve and call it J and it will also be AS EFFICIENT AS point X. So there is no point on the curve that can be considered the MOST effecient combination of goods.

@@juwaynilucman2257 ah, that makes sense, thank you so much for taking the time to explain!

2 coats = 85 belts. 3 coats = 70 belts. If you are going to invest more resources to produce from 2 to 3 coats, then it means you are given up the production of belts from 85 to 70. Therefore 85 - 70 = 15. So the correct answer is D.

If you are asking no. 2 question, if he had produced 2coats he's producing 85 belts right? and then if he produces one more extra coat, he produces 70 belt on the other hand so he loses (85-70) 15 belts that he "could have" Produced so the "could have" Produced resource is called the opportunity cost so it's D 😅

It is E because the middle of the ppc would be the most efficient combination of all goods. X is only efficient for the production of capital goods.

@@karthikmanishankar5361 but why does X lead to a greater economic growth than W ?

Srishti Dua don’t forget, the graph for Q1 is for INCREASING opportunity cost, so that means that if Good B is produced more than the opportunity cost increases for Good A. Get it??

that sounds like some new technology lol (new tech allows you to bypass scarcity and reach outside of the curve) note: the curve would actually get shifted if new technology comes out

Can't believe this is the only comment who suggest this. I just assumed it was a trick question and this was the answer. But I guess that is more thinking like a mathematician rather than an economist.

It’s A

Thanks for leaving your answers, so I'm more sure that the answer I chose is right (all same as you)

​ @syzygy He gives the answers in his first comment at the top. I thought 4. was D too. I don't think the video explains why D is true, but I get why X is not the most efficient because every point on the curve is most efficient.

got it !!!!!

I am

Actually it’s 2024

Sorry. Good luck though :)

Please can you make a video on how to solve opportunity cost Please ​@JacobAClifford