A modern-day Robinson Crusoe

The Production Possibilities Model

Part 1

A modern-day Robinson Crusoe (perhaps a lost soul from one of those ‘Reality Shows’, so-called, on TV) expends 8 hours a day on two basic “Survival” tasks – gathering coconuts and catching fish. This activity can be described by the Production Possibilities Schedule immediately below.

With the help of the data in the schedule above, answer each of the following questions.

1. Determine the opportunity costs the ‘castaway’ would incur to catch the first, second and third fish respectively. (3)
2. Is the ‘law of increasing opportunity costs’ at work here? Explain your answer. (1)
3. What’s the shape of the PPC in this case? What does this shape signify? (1)
4. If the castaway is operating on his/her PPC what main assumption has been met? (1)
5. Suppose Mr./Ms. Crusoe ups his/her workday from 8 to 12 hours per day. What would likely happen to the PPC? (1)
6. Explain what effect a ladder and a fishing rod likely would have on the castaway’s PPC. (2)

Part 2

Once you receive feedback on your assignment, please reflect on your teacher’s comments in the dropbox:

• What will you work on for your next assignment?
• If you could do it again, what would you do differently?