Group A

1
Group A

• Time Spent Number of Time Spent Number of
• Producing Hot dogs Producing hot dog buns
• Hot dogs Produced Hot dog buns Produced
• 0 hours 0 5 hours 10
• 1 hour 1 4 hours 8
• 2 hours 2 3 hours 6
• 3 hours 3 2 hours 4
• 4 hours 4 1 hour 2
• 5 hours 5 0 hours 0

2
Production Possibilities Curve-Group A
Hot Dogs
3
Group B

• Time Spent Number of Time Spent Number of
• Producing Hot dogs Producing hot dog buns
• Hot dogs Produced Hot dog buns Produced
• 0 hours 0 5 hours 5
• 1 hour 2 4 hours 4
• 2 hours 4 3 hours 3
• 3 hours 6 2 hours 2
• 4 hours 8 1 hour 1
• 5 hours 10 0 hours 0

4
Production Possibilities Curve-Group B
Hot Dogs
5
Terms of Trade

• A B
• Hot Dogs Buns Hot Dogs Buns
• 0 10 10 0
• 5 -5 -5 5
• 5 5 5 5

6
Production Possibilities Curve-Group AAfter Trade
Hot Dogs
7
Production Possibilities Curve-Group B
Hot Dogs