Look over the table – Notice the various combinations – then answer the questions.

Combinations
	A	B	C	D	E	F	G	H	I	J
Potatoes (millions of pounds)	54	52	49	45	40	34	27	19	10	0
Tractors (in thousands)	0	1	2	3	4	5	6	7	8	9

1. At combination B, what is the production of potatoes ___________, tractors __________ ?

1. At combination E, what is the production of potatoes ___________, tractors __________ ?

1. What happens to the quantity of potatoes as tractor production increases?

1. As the economy moves from producing tractors at combination B to producing tractors at combination C, how much change takes place in potato production? ______ (This is the opportunity cost or the amount of potatoes that must be sacrificed to produce one more tractor.)

1. Plot the production possibilities table to make a Production Possibilities Curve. Place potatoes on the vertical axis and tractors on the horizontal.

Answer the following questions using the Production Possibilities Curve you created on the reverse.

1. If each point on the curve represents the maximum production of each item at that point, what does the space to the left or under the curve represent?

1. Plot a point at 8 units of tractors and 40 units of potatoes. Label it “X”. Can this economy produce the quantities represented by “X”? Why or why not?

1. What must this economy do to produce at point “X”?

1. Plot a point at 3 units of tractors and 15 units of potatoes. We have established in number 6 that this economy can produce this. However, if the curve represents full production and full employment, what would economists call production represented by point “Y”?