The Production Possibilities Curve

Front

If a point lies inside the curve, what does this mean about a country/individual/company?

Back

There is an idle, unproductive, or inefficient use of resources.

Front

What does point B represent?

Back

Production at the country's maximum potential.

Front

What does point Y represent on the PPC? Options: Productie efficiency, Unattainable / impossible, Inefficency, Nothing, Allocative efficiency

Back

Unattainable / impossible

Front

If many workers decide to retire at an early age, the PPC would shift inward.

Back

True

Front

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

Back

2 trucks

Front

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

Back

3 boats

Front

If a Production Possibilities Curve is concave, then

Back

opportunity cost is increasing

Front

Suppose that a new machine that speeds up automotive production is introduced into the auto industry. This would cause the PPC to

Back

Shift outward