Economics HS Social Studies Unit 01 Lesson: 01 Interpreting a Production Possibilities Curve Curve 1 Curve 2 I5 20 25 GUNS (S billions) 1. At which point on the curve is this nation likely to be at war? 2. How many bilions of dollars are being spent on domestic goods at this point? On military goods? 3. At which point on the curve is this nation likely to be at peace, but still militarily prepared? 4. At this point, what is the amount of reduction in military spending from the point identified in question 1? 5. At which point is this nation in an apparent recession, underutilizing its resources? 6. What is the recessionary gap in terms of "butter"? What is the recessionary gap in terms of "guns"? 7. Curve 2 represents a decrease in production possibilities. Identify two possible reasons for the leftward shift in the PPC. b. c2010, TESCCC 07/01/10 page 24 of 26 BUTTER (S billions) * R R n

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Economics
HS Social Studies
Unit: 01 Lesson: 01
Interpreting a Production Possibilities Curve
25
20
15
Curve 1
10
Curve 2
5 10 15 20 25 30
35
GUNS (S billions)
1. At which point on the curve is this nation likely to be at war?
2. How many billions of dollars are being spent on domestic goods at this point?
On military goods?
3. At which point on the curve is this nation likely to be at peace, but still militarily prepared?
4. At this point, what is the amount of reduction in military spending from the point identified in
question 1?
5. At which point is this nation in an apparent recession, underutilizing its resources?
6. What is the recessionary gap in terms of "butter"?
What is the recessionary gap in terms of "guns"?
7. Curve 2 represents a decrease in production possibilities. Identify two possible reasons for the
leftward shift in the PPC.
a.
b.
C2010, TESCCC
07/01/10
page 24 of 26
BUTTER (S billions)
Transcribed Image Text:Economics HS Social Studies Unit: 01 Lesson: 01 Interpreting a Production Possibilities Curve 25 20 15 Curve 1 10 Curve 2 5 10 15 20 25 30 35 GUNS (S billions) 1. At which point on the curve is this nation likely to be at war? 2. How many billions of dollars are being spent on domestic goods at this point? On military goods? 3. At which point on the curve is this nation likely to be at peace, but still militarily prepared? 4. At this point, what is the amount of reduction in military spending from the point identified in question 1? 5. At which point is this nation in an apparent recession, underutilizing its resources? 6. What is the recessionary gap in terms of "butter"? What is the recessionary gap in terms of "guns"? 7. Curve 2 represents a decrease in production possibilities. Identify two possible reasons for the leftward shift in the PPC. a. b. C2010, TESCCC 07/01/10 page 24 of 26 BUTTER (S billions)
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