opportunity Cost

What is a graphical model that represents all of the different combinations of two goods that can be produced

• production possibilities curve (PPC)

• efficiency

• inefficient use (under-utilization) of resources

• contraction

What is Term Definition production possibilities curve (PPC) (also called a production possibilities frontier) a graphical model that represents all of the different combinations of two goods that can be produced; the PPC captures scarcity of resources and opportunity costs opportunity cost

• the value of the next best alternative to any decision you make

• when the opportunity cost of a good remains constant as output of the good increases

• the underemployment of any of the four economic resources

• an increase in an economy's ability to produce goods and services over time

What is the underemployment of any of the four economic resources

• contraction

• inefficient use of resources

• constant opportunity costs

• growth

Which graph is showing decreasing PPF

• Left

• Right

• Middle

Which graph is showing Constant PPF

• Left

• Right

• Middle

Which graph is showing Increasing PPF

• Left

• Right

• Middle

Which of the following statements best captures the tradeoff between capital goods and consumption goods in economic growth?

• A society must balance the need for current consumption with the ability to consume more in the future.

• A society can consume as much as it can now without impact on consumption

• Any increase in output will lead to economic growth because it allows a society to produce more goods and services today

• There is no tradeoff between capital and consumer goods because both can lead to an increase in economic growth

Opportunity cost is best described by which of the following statements?

• The value of the next best option given up when making a decision

• The cost a buyer sees for something they want

• The monetary cost of any economic transaction

• The price to a consumer of a good or service

• The tradeoffs faced when choosing how to use a scarce resource

All of the following are part of the opportunity costs of going to college EXCEPT

• The money spent on tuition

• Interest payments on student loans

• Money spent on textbooks

• Foregone wages given up to attend college

• Money spent on clothes

Which of the following is an accurate representation of economic growth?

• An increase in both the potential and actual level of output of goods and services over time

• An increase in human resources that aren't used

• An increase in the amount of money circulating in the economy

• An increase in capital available without any increase in production

• Any increase in output of goods or services when an economy starts at a point inside its PPC