On Frontier of New ‘Gold Rush’

Guinea, in West Africa, has the world’s biggest bauxite reserves, the main source of aluminum for electric vehicles. More than 200,000 acres of farmland will be destroyed by bauxite mining. Runoff from mines is destroying many rivers and fishermen draw in hauls so small they can barely make a living.—washingtonpost.com

Answer the following questions to check your understanding of the story.

1) How is the increase in the production of bauxite illustrated when Guinea’s production possibilities frontier measures food production on the y-axis and bauxite production on the x-axis?

a) By a movement downward along the PPF.

b) By a movement from a point on the PPF to a point outside the PPF.

c) By the PPF rotating outward.

d) By a movement from a point inside the PPF to a point on the PPF.

2) What is Guinea’s opportunity cost of bauxite?

The opportunity cost of bauxite is ____________.

a) the increase in electric vehicle production

b) a decrease in Guinea’s bauxite reserves

c) food forgone

d) fishermen who can barely make a living

On Frontier of New ‘Gold Rush’

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