Opportunity Cost and Production Possibilities Curve Review

Front

What is the production possibilities curve?

Back

a graph that shows how much an economy can produce between 2 goods

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

The production possibilities curve is an illustration of what?

Back

Opportunity costs and trade-offs

Front

What is the fundamental problem of every society? Options: labor costs, scarcity, economic interdependence, market fluctuation

Back

scarcity

Front

What does point B represent? Options: Production at greater than the country's minimum potential, Production is less than the country's minimum potential, Productive inefficiency, Productive efficiency

Back

Productive efficiency

Front

Which point represents "resources are not being used efficiently, or resources are being wasted or idle"? Options: Point A, Point Y, Point X, All of the above

Back

Point X

Front

What is opportunity cost?

Back

the value of the next best option that is not selected when a choice is made.

Front

What is Michael's opportunity cost when he chooses to go fishing with his friend instead of attending a concert?

Back

going to a concert

Front

What is the opportunity cost for Andrea's daughter who decides to go to the beach instead of the mountains?

Back

a trip to the mountains

Front

What is Jason's opportunity cost when he chooses to ride 4-wheelers with his son instead of working overtime for his boss?

Back

work overtime for his boss