Temple University
Department of Economics

Principles of Microeconomics
Econ 52 Section 701

Production Possibilities

Directions: Click on 'File' at the top left of your browser.  Click on "save as..." Open the file you just saved, enter your answers and save again. When you are done just email the file to me as an attachment. Be brief, since you will be doing a lot of these throughout the semester.

Name:_________________________

1.  Using the language of production possibilities frontiers explain why the U.S. spends more on defense and less on foreign aid than most other countries of the world.   Consider what is being produced and what the tradeoffs are.

2.  Use the language of production possibilities frontiers to explain such environmental disputes as the snail darter, old growth forests, or the spotted owl. Consider what is being produced and what the tradeoffs are.