Flashcard #2: PPC

Front

What point is currently impossible to achieve with the current state of technology? Options: Point G, Point H, Point A, Point E

Back

Point H

Front

The opportunity-cost versus gain for moving from point B to D can be best expressed as

Back

5 tanks lost for 7 cars gained

Front

The economy moves from point A to B, B to C, C to D, D to E, and E to F, the amount gained (for each step, i.e. A to B) is

Back

decreasing

Front

People want both cars and tanks but prefer cars over tanks, the allocative efficient point for the economy is

Back

Point E

Front

Which point best represents an inefficient use of resources within the economy? Options: Point G, Point F, Point H, All points on the graph represent productive efficiency within the economy

Back

Point G

Front

A decrease in unemployment (or an increase in employment) would best be represented by a movement from

Back

point G to D

Front

The economy moves from point A to B, B to C, C to D, D to E, and E to F, the opportunity cost (for each step i.e. A to B, B to C, etc) is

Back

increasing

Front

The economy moves from point D to B, this could best be explained by

Back

a change in preferences for tanks over cars within the economy

Front

Which of the following best illustrates the concept of productive efficiency on the graph? Point A, Point C, Point H, all the points on the curve

Back

all the points on the curve

Front

If society only wants and values cars, what point would be the most allocatively inefficient?

Back

Point A