Production Possibilities Curve; Rational Decision Making; and Specialization

1.) If you owned a business, what would a production possibilities curve tell you? Be specific. What are two factors that could cause your production possibilities curve to shift outward??



*If I owned a business I would own a shoe store. A PPC would tell me what items I should sell more of; for example if was selling shoes and shirts and I could sell more shoes efficiently in a hour than shirts the PPC tells me that I should really focus on making shoes.

Two factors that could cause my PPC to shift outward is if I hire more employees and lowering my prices.



2.) What is the best way to determine whether or not we are making a rational economic decision?



* The best to determine whether or not your making a ration decision is to make a PPC (which compares two products) Chart/Graph and look at your Absolute advantage and your Comparative advantage.



3.) Why do companies choose to specialize and trade? What would happen if companies did not choose to specialize?



* Companies choose to specialize and trade because some companies can make products faster and more effiecent then other companies. If companies chose not to specialize there will more likely be a waiting period for product because everything will just slow down and some companies will defintely lose there businesses.



4.) Include two relevant visuals ( based on standards) with captions that explain their signaficance to the standard.

5.) How do you feel about your knowledge of this standard? What are two questions that you have about this standard?



* I feel like i understand this standard enough to move on to the next one. But two questions I would like to know is more information about the PPC chart, like what the point mean. And i want to go over the Rational Decision Making more and hear more examples.