Unit 1, Chapter 1: PS #2
Mr. Maurer
AP Economics
Name: _______________________________
Date: _____________________
Chapter 1, Problem Set #2 - Graphing, Opportunity Cost
Questions 1-4 are based on the following graph:
1. Construct a table of data for points A-E in the graph. Put it in the space to the right of the graph.
2. How are price and quantity related in this graph?
3. According to economists, which is the dependent variable and which is the independent variable?
4. Write a linear equation that summarizes the data.
Questions 5-7 are based on the following graph:
5. What is the slope of the straight line through point a?
6. What is the slope of the straight line through point b (and tangent to the curve)?
7. What is the slope of the straight line through point c?
Unit 1, Chapter 1: PS #2
8. How do you interpret a vertical line on a two-variable graph? A horizontal line?
9. Which is the dependent variable and which is the independent variable in the following
statement: “A decrease in business taxes had a positive effect on investment spending.
10. The data below show the various combinations of good X and good Y that can be produced in an
economy. On your own graph paper, plot the following combination of good X and good Y and
connect the points with a smooth curve. Label the horizontal axis “Good X” and the vertical axis
“Good Y.” Be sure to include a scale on both axes.
Good X
Good Y
37
0
34
10
30
17
28
20
20
29
10
36
0
40
9. Calculate the opportunity cost of increasing good X production from 0 to 10 units in terms of the
amount of good Y that could no longer be produced.
10. Calculate the opportunity cost of increasing good X production from 10 to 20 units in terms of
the amount of good Y that could no longer be produced.
11. Calculate the opportunity cost of increasing good X production from 20 to 30 units in terms of
the amount of good Y that could no longer be produced.
12. What happens to the opportunity cost of producing good X as more of good X is produced.
13. Suppose instead that the following data show the various combinations of good X and good Y
that can be produced. On your own graph paper, plot the following combination of good X and good
Y and connect the points with a smooth curve. Label the horizontal axis “Good X” and the vertical
axis “Good Y.” Be sure to include a scale on both axes.
Good X
Good Y
70
0
60
10
50
20
40
30
30
40
20
50
10
60
0
70
14. Calculate the opportunity cost of increasing good X production from 0 to 10 units in terms of the
amount of good Y that could no longer be produced.
15. Calculate the opportunity cost of increasing good X production from 10 to 20 units in terms of
the amount of good Y that could no longer be produced.
16. Calculate the opportunity cost of increasing good X production from 20 to 30 units in terms of
the amount of good Y that could no longer be produced.
17. What happens to the opportunity cost of producing good X as more of good X is produced.
18. Graphs like the two you have just drawn, which show the total quantities of two different goods
that an economy is capable of producing, are called production possibilities curves. Based on just
the two graphs you drew, what can you say about a production possibilities curve that is a straight
line, like the second graph? What can you say about a production possibilities curve that is bowed
out, like the first graph?