This is Zhana Barel's blog for Microeconomics course at SAIT, Calgary, Alberta.
Exercise 1.2
Production Possibilities Graphs represent different combinations of maximum output that can be produced from available resources and technology. By using different models economy can decide on how much of each product they can produce with maximum efficiency with available resources and technology.
Everyone of us at some point in life will face some opportunities and make choices. I was faces with an opportunity of opening a daycare (12 years of experience and 9 years of education) or completely changing my occupation. To buy a daycare you would need at least $600,000.00 . Even if I put $600.00 every month at 5% , it will take me more than 30 years to save up for it. But if I went back to school and spent 6-7 years completing a degree part-time - i would need only around $35,000.00. But earnings in each case will be almost the same. And I have chosen the second opportunity.
