Figure 3-7
Bintu's Production Possibilities Frontier
Juba's Production Possibilities Frontier
-Refer to Figure 3-7.If Bintu and Juba both spend all of their time making bowls,then total production is
A)2 bowls.
B)3 bowls.
C)4 bowls.
D)6 bowls.

Question

Figure 3-7
Bintu's Production Possibilities Frontier
Juba's Production Possibilities Frontier  
-Refer to Figure 3-7.If Bintu and Juba both spend all of their time making bowls,then total production is
A)2 bowls. 
B)3 bowls. 
C)4 bowls. 
D)6 bowls.

Quizplus · Accepted Answer

In this scenario, Bintu and Juba both have production possibilities frontiers (PPFs) for making baskets and bowls. The slope of the PPF represents the opportunity cost of producing one good in terms of the other good. Bintu's PPF has a steeper slope than Juba's, which means that she has a higher opportunity cost of producing bowls in terms of baskets than Juba. Therefore, if Bintu and Juba both spend all of their time making bowls, it would make sense for Juba to specialize in making bowls and for Bintu to specialize in making baskets. Together, they would be able to produce a total of 6 bowls - three from Juba and three from Bintu. This is the point of specialization and trade, where each person specializes in the activity they have a comparative advantage in and then trades with others to obtain the goods they need.

Figure 3-7 Bintu's Production Possibilities Frontier