PPC Semester Exam Preview

The diagram shows a production possibility curve (PPC). Which of these points shows the largest possible output of product Y currently achievable?

• A

• B

• C

• D

Which of these points cannot be attained at present?

• A

• B

• C

• D

The production possibility curve (PPC) shows the hours per day that a person has for either work or leisure. This person works 6 hours a day but then decides to work 9 hours a day. Which movement shows this change?

• T to R

• U to T

• U to V

• T to U

The production possibility curve (PPC) shows the hours per day that a person has for either work or leisure. The person used to have 15 hours of leisure. But because of a new job, he now has 6 hours of work. Which movement illustrates this?

• W to R

• W to U

• U to W

• T to U

The diagram shows a production possibility curve (PPC) for a country. The country moved from position X to position Y on the PPC. What is the most likely reason for this change?

• Businesses have decided to increase investment in technology.

• New economic resources have been discovered in the country.

• People can now afford more products to satisfy their needs.

• The government has encouraged long-term economic growth.

The diagram shows an economy’s production possibility curve (PPC). The economy moves from point X to point Y. What is the most likely EFFECT of this change?

• More people are employed

• Different quantities of the goods are produced

• There is an increase in land use

• There is an increase in investment.

A country’s infrastructure was damaged by a flood. Before the disaster, the country was producing at point Y on the production possibility curve (PPC). Which point represents the country’s production immediately after the disaster?

• A

• B

• C

• D