Production Possibilities Frontier (PPF)

Front

True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.

Back

True

Front

A country is responsible for producing guns for military defense and school lunches for students who can't afford it ("butter"). The opportunity cost of producing more guns is..

Back

decrease in the # of lunches divided by the increase in the # of guns

Front

If the production of good X increases by 3 units and production of good Y decreases by one unit, then the opportunity cost of one unit of X is ____ unit(s) of Y.

Back

1/3

Front

Based on the production possibilities table, which production combination is possible? Options: 28 pizzas and 5 pairs of shoes, 3 pairs of shoes and 23 pizzas, 2 pairs of shoes and 20 pizzas, 4 pairs of shoes and 15 pizzas

Back

2 pairs of shoes and 20 pizzas

Front

If the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.

Back

3

Front

What is the production possibilities curve?

Back

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

Front

What is opportunity cost?

Back

the opportunity one has to give up in order to gain something else

Front

How do you satisfy your unlimited wants in a world of limited resources? Options: by making more money, by making choices, by stealing, by setting a budget

Back

by making choices

Front

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

Back

scarcity

Front

Land, Labor, Capital, and Entrepreneurship

Back

Factors of Production