Posted: May 27th, 2015

Constructing Production Possibilities Frontiers

Graph a hypothetical PPF for a wealthy and developing country. Each country on your graph should have the same degree of concavity, with the two outputs of goods and services labeled “Other Goods and Services” on the X­axis and “Clean Air and Water” on the Y­axis. ⢠Use (free) online graphing software such as “Padowan” to create your graph. ⢠Follow the instructions on the website to learn how to create and manipulate the graph. ⢠Save the graph to your computer as a jpeg file. ⢠Copy and paste the jpeg into the assignment document that you deliver to your instructor. ⢠Clearly identify your finished graph. Step 2 Contrast the effects of environmental quality on your PPF. ⢠What are the trade­offs that people might experience in the wealthy and developing countries when equal increases in clean air and water occur? Write out your answer on the graph. ⢠How have trade and specialization affected production expansion? Can these effects be universally applied? ⢠Why might environmental quality treaties such as the Kyoto Protocol require greater reduction targets for richer countries?