Opportunity Cost and Production Possibilities Curve Review

Front

What is the production possibilities curve?

Back

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

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

The production possibilities curve is an illustration of what?

Back

Opportunity costs and trade-offs

Front

What is the fundamental problem of every society? Options: labor costs, scarcity, economic interdependence, market fluctuation

Back

scarcity

Front

What does point B represent?

Back

Productive efficiency

Front

Which point represents "resources are not being used efficiently, or resources are being wasted or idle"? Options: Point A, Point Y, Point X, All of the above

Back

Point X

Front

What is opportunity cost?

Back

the value of the next best option that is not selected when a choice is made.

Front

What is Michael's opportunity cost when he chooses to go fishing with his friend instead of attending a concert?

Back

going to a concert

Front

What is the opportunity cost for Andrea's daughter who decides to go to the beach instead of the mountains?

Back

a trip to the mountains

Front

What is Jason's opportunity cost when he chooses to ride 4-wheelers with his son instead of working overtime for his boss?

Back

work overtime for his boss