Production Possibilities

Front

What is the production possibilities curve?

Back

a graph that shows how much an economy can produce between 2 goods

Front

The production possibilities curve is an illustration of what?

Back

Opportunity costs and trade-offs

Front

If a point lies inside the curve, this tells the company what?

Back

They are not efficient.

Front

The opportunity cost of increasing production from 7 to 9 trucks is

Back

3 boats

Front

The opportunity cost of increasing production from 4 to 7 boats is

Back

2 trucks

Front

If a natural disaster strikes, the production possibilities curve can shift

Back

To the left

Front

What can cause a production possibilities curve to move to the right? Options: thousands of people move out of the country, an epidemic kills thousands of young men and women, a new invention lowers the cost of production, the population is growing increasingly old

Back

a new invention lowers the cost of production

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

Any point on the Production Possibilities Frontier represents

Back

a Tradeoff

Front

Underutilization shows an economy that is

Back

inefficient