3. Give an example of a trade-off your school or local government might have to make. Describe the issues on both sides of the debate.
4. Name one decision you made recently. What were the possible opportunity costs of that
decision?
5. Suppose that a country has the resources to produce 3 million cars and 100 million tons of iron
ore every year. Why is it a problem if the country produces 2 million cars and 75 million tons
of iron ore one year?
6. From 2000 to 2010, the gross domestic product in the United States grew at an average annual
rate of 3.4 percent. What do you think happened to the production possibilities frontier?