Creating Production Possibilities
Schedules and Curves
Student Assignment
In this assignment, you will create a production possibilities schedule and curve to
determine what your opportunity costs are and which product is the best for you to
produce.
Directions:
1. Gather materials and necessary information.
a) Ask your teacher which word-processing software you will be using.
b) Keep your lesson and assignment open in case you need to review what you
have learned.
2. Read and follow each set of instructions carefully.
a) Compete the production possibilities schedule and production possibilities curve,
starting with the information provided. Be sure to ask your teacher for help if you
are not sure how to do this.
b) Make sure you complete the questions on each page.
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Assignment: Determining Production Possibilities
You are getting ready to open The Shoe Hut, but you need to need to determine
whether you have the absolute or comparative advantage in the production of
specific items. This will help you determine which product is the best for
specialization.
Your production possibilities are as follows:
● You have the resources to produce up to 15 running shoe inserts.
● You have the resources to produce up to 10 hiking boot inserts.
● For every 2 hiking boot inserts produced, you give up the production of 3
running shoe inserts.
Your production possibilities schedule will help you determine:
● your opportunity costs.
● your best options for production.
Scroll to the next page to complete your production possibilities schedule.
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1. Using the information that you learned about your ability to produce running
shoe inserts and hiking boot inserts, complete your production possibilities
schedule. (5 points)
Running shoe
inserts
Combinations
Hiking boot inserts
A
15
0
B
12
2
C
9
4
D
6
6
E
3
8
F
0
10
2. Use the information from your production possibilities schedule to create your
production possibilities curve by filling in the following graph. Use textboxes to
insert text, and use lines and circles from the shapes function to illustrate your
production possibilities. Be sure to mark points A through F on the graph. (5
points)
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3. Based on the data within your schedule and curve, are you using your
resources efficiently? Support your answer using the data presented. (5
points)
Yes, my resources are being used efficiently if I choose point D, as then I will be making equal
amounts of product (1 to 1 ratio). This is the most efficient point by far compared to the others,
because the two axes are the closest together out of all of the 7 points.
4. Based on the information you used to create your schedule and curve, which
product would you recommend the Shoe Hut focus on, and why? Provide
details that support your answer. (5 points)
I would recommend that the Shoe Hut focus on both of them, as they have a perfect 1 to 1 ratio.
However, if needed, it is possible to allocate all production power towards running shoe insoles at
a 15 to 0 ratio compared to hiking shoe insoles at 10 to 0. If needed, it would be better for the
shoe hut to focus on running shoe insoles because they are easier to produce and there is less
production cost.
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