Economics PPF Quiz

What is the opportunity cost of changing production from 10 chairs to 40 chairs?

• 40 lbs of peanuts

• 30 lbs of peanuts

• 20 lbs of peanuts

• 50 lbs of peanuts

What is the opportunity cost of changing production from 0 lbs of peanuts to 50 lbs of peanuts?

• 30 chairs

• 10 chairs

• 40 chairs

• 20 chairs

Plot Point 'A' at 10 chairs and 10 lbs of peanuts. What situation is the economy in at this point?

• Overutilization

• Efficient

• Underutilization

• Inefficient

If the economy wanted to produce 30 chairs and 30 lbs of peanuts, what would have to happen? Why?

• The economy would need to shrink because (30, 30) is within the PPF

• The economy would need to change its focus to a different product

• The economy would need to grow because (30, 30) is beyond the PPF

• The economy would need to stay the same because (30, 30) is on the PPF

What would happen to the economy if the cost of inputs/production for movies and books increased?

• The PPF would shift to the left

• The PPF would shift to the right

• The PPF would grow because the economy has grown in efficiency

• The PPF would decrease because it's now more expensive to produce products

What would happen to the economy if a new technology was discovered that produced books and movies more efficiently?

• The PPF would shift to the left

• The PPF would shift to the right

• The PPF would grow because the economy has grown in efficiency

• The PPF would decrease because it's now more expensive to produce products