AP 1.4 CB Analysis and Consumer Choice

Multiple Choice

Which of the following best explains why a production possibilities curve (PPC) might be concave rather than straight?

• Because resources are perfectly adaptable to the production of both goods.

• Because increasing production of one good allows for specialization and efficiency gains that offset the loss of the other good meaning decreasing opportunity costs.

• Because the two goods are always substitutes, not complements.

• Because opportunity cost remains constant as production shifts between goods.

Fill in the Blanks

Multiple Choice

Based on the tables, at what number of acres cleaned-up is the total net benefit maximized for the city?

• 2 acres

• 3 acres

• 4 acres

• 5 acres

Multiple Choice

What was her opportunity cost of attending the concert?

• $40

• $50

• $75

• $90

Multiple Choice

If Lilly wants to maximize her total utility given the prices and marginal utilities, which of the following actions should she take?

• A) Buying more candy bars and bags of chips

• B) Buying more candy bars and fewer bags of chips

• C) Buying fewer candy bars and more bags of chips

• E) Buying the same number of candy bars and bags of chips

• D) Buying fewer candy bars and bags of chips