Unit 2 Review (AA vs CA, PPC & S & D) 2O24/25

Front

The production possibility curve shows

Back

the alternative combinations of two goods that an economy is capable of producing.

Front

Because not all resources are the same, as we try to produce more and more of the same product, what happens?

Back

our gains decrease and opportunity cost increases

Front

The point that represents maximum production of Storage Sheds

Back

F

Front

Point that is currently not possible due to limit in resources, technology and abilities

Back

H

Front

People like both but prefer Crab Puffs over Storage Sheds. What is the allocatively efficient point?

Back

B

Front

People prefer Crab Puffs over Storage Sheds, what is the most Allocatively INefficient point?

Back

F

Front

The people of this nation do not like Storage Sheds at all, the Allocatively Efficient point would be

Back

A

Front

Production moves from E to D, the gains will be ______ and the opportunity cost will be ______

Back

GAIN: 75 Crab Puffs; O.C.: 2 Storage Sheds

Front

When this nation moves from producing at point G to point E it will experience

Back

gains of both storage sheds and crab puffs along with no opportunity cost

Front

Point that best represents unemployment and productive inefficiency

Back

G