APMacro Unit 1.1-1.4 open response questions

The table shows that if the farmer grows just corn, 100,000 kg can be harvested, but there will be no resources left to grow soybeans. Explain the opportunity cost in this scenario.

Evaluate responses using AI:

OFF

If nothing but soybeans are grown, 100,000 kg can be harvested but no corn. Discuss the implications of this choice.

Evaluate responses using AI:

OFF

Every 20,000 kg increase in soybean production results in a fall in corn output of 20,000 kg. Analyze this trade-off.

Evaluate responses using AI:

OFF

In other words, the opportunity cost of one kg of soybeans is one kg of corn. Explain this concept using the data provided.

Evaluate responses using AI:

OFF

Assume Westoverland is currently allocating all of its resources toward tire production (point A). As the country moves from point A to point B, it produces its first 1 million driveshafts and gives up 5 million tires. Explain the opportunity cost involved in this movement.

Evaluate responses using AI:

OFF

However, the next 1 million driveshafts (from point B to C) "cost" Westoverland 10 million tires. Discuss how the opportunity cost changes as production shifts from B to C.

Evaluate responses using AI:

OFF

As driveshaft production continues to increase, the opportunity cost of additional driveshafts increases. Analyze why this might be the case.

Evaluate responses using AI:

OFF

The next million driveshafts (from C to D) cost 15 million tires, and the last million driveshafts (D to E) cost Westoverland 20 million tires. Describe the trend in opportunity costs as Westoverland moves from C to E.

Evaluate responses using AI:

OFF

The average opportunity costs of driveshafts ("d") in terms of tires ("t") along Westoverland’s PPC can be calculated as in the following table. Explain how the opportunity cost is calculated for each movement along the PPC.

Evaluate responses using AI:

OFF

On Westoverland’s original PPC, an increase of driveshaft production from 2 million to 3 million units (from A to B) would have come at the opportunity cost of 15 million tires.

Evaluate responses using AI:

OFF