Production Possibilities Curve; Rational Decision Making; and Specialization

Standards EF2 and EF3


If you owned a business, what would a production possibilities curve tell you? Be specific. What are two factors that could cause your production possibilities curve to shift outward?

If I owned a business a production possibilities curve would tell me the combinations of two products is possible with a given amount of resources. The two factors that can effect an a ppc to shift outward is a decrease in supplies or a limited use in technology

What is the best way to determine whether we are making a rational economic decision?

When marginal benefits exceed or equal marginal cost

Why do companies choose to specialize and trade? What would happen if companies did not choose to specialize?

Companies specialize and trade because if they are specializing in a country can produce the thing it can do best rather than dividing its resources. Most likely countries will trade with each other by doing this other goods they don’t have will be a comparative advantage in other words the products are now opportunity cost



Include two relevant visuals with captions that explain their significance to the standard.

This is an picture of the rational decision making process

This is an actually PPC graph

Formative Assessment Reflections- How do you feel about your knowledge of this standard? What are two questions that you have about this standard?

   I  understand this standard because I can use this in my everyday life. I have a question to the second problem on the blog I do not understand it or I am confused at what you are asking for can you please make it clear to me