Production Possibilities Curve

T or F: The graph showed the idea of efficiency

• True

• False

Points outside the curve means

• you can produce them

• you cannot produce them

• you can reproduce them

• you can sell them

What is the meaning of efficiency?

• reserving all your resources

• using all your resources to the fullest

• selling all your resources

• using some of your resources

What concept does the production possibilities curve illustrate?

• Demand and supply

• Scarcity

• Market equilibrium

• Economic growth

What does a point inside the curve represent?

• Efficiency

• Inefficiency

• Unattainability

• Opportunity cost

What was the opportunity cost of one triangle (corn & wheat) for the speaker?

• 3 squares

• 1 square

• 2 squares

• 4 squares

What shape does the curve have when opportunity cost is constant?

• Bowed in

• Straight line

• Circle

• Bowed out

What does a bowed-out curve indicate?

• Decreasing opportunity cost

• Constant opportunity cost

• Increasing opportunity cost

• No opportunity cost

What can cause the production possibilities curve to shift?

• Decrease in demand

• Better technology

• Decrease in resources

• Economic recession

Another word to describe a point outside the curve is?

• Efficiency

• Unattainability

• Perfect competition

• Inefficiency