Understanding the Production Possibilities Curve

Understanding the Production Possibilities Curve

Assessment

Flashcard

Social Studies

12th Grade

Hard

Created by

Wayground Content

FREE Resource

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10 questions

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1.

FLASHCARD QUESTION

Front

Which of the following best describes a point that lies inside the production possibilities curve (PPC)?
Options: Efficient use of all resources, Inefficient use of resources, Unattainable with current resources, Maximum possible output

Back

Inefficient use of resources

2.

FLASHCARD QUESTION

Front

If an economy is producing on its production possibilities curve, what does this indicate about its resource utilization?

Back

All resources are fully employed

3.

FLASHCARD QUESTION

Front

Which of the following would cause the production possibilities curve to shift outward? A decrease in available resources, An improvement in technology, Increased unemployment, A decrease in population

Back

An improvement in technology

4.

FLASHCARD QUESTION

Front

If a country moves from a point inside the PPC to a point on the PPC, what has most likely happened?

Back

The country has improved efficiency.

5.

FLASHCARD QUESTION

Front

Suppose an economy can produce either 100 units of good X or 200 units of good Y using all its resources. What is the opportunity cost of producing 1 unit of good X in terms of good Y?

Back

2 units of good Y

6.

FLASHCARD QUESTION

Front

Given a PPC that is bowed outward, what does this shape indicate about opportunity costs?

Back

Opportunity costs are increasing.

7.

FLASHCARD QUESTION

Front

A country is currently producing at point A on its PPC, specializing in agricultural goods. If it wants to increase the production of manufactured goods, what must it do, and what is the economic implication?

Back

Decrease agricultural goods to increase manufactured goods, incurring opportunity cost

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