AP 1.4 CB Analysis and Consumer Choice

Multiple Choice

Which of the following best explains why a production possibilities curve (PPC) might be concave rather than straight?

• Because resources are perfectly adaptable to the production of both goods.

• Because increasing production of one good allows for specialization and efficiency gains that offset the loss of the other good meaning decreasing opportunity costs.

• Because the two goods are always substitutes, not complements.

• Because opportunity cost remains constant as production shifts between goods.

Fill in the Blank

How many miles should this athlete run according to the marginal benefit and marginal cost table?

Multiple Choice

Based on the tables, at what number of acres cleaned-up is the total net benefit maximized for the city?

• 2 acres

• 3 acres

• 4 acres

• 5 acres

Multiple Choice

What was her opportunity cost of attending the concert?

• $40

• $50

• $75

• $90

Multiple Choice

If Lilly wants to maximize her total utility given the prices and marginal utilities, which of the following actions should she take?

• A) Buying more candy bars and bags of chips

• B) Buying more candy bars and fewer bags of chips

• C) Buying fewer candy bars and more bags of chips

• E) Buying the same number of candy bars and bags of chips

• D) Buying fewer candy bars and bags of chips