1.5 Production Possibilities Curve (PPC)

Multiple Choice

Which is a key assumptions regarding production in this context?

• Only one good can be produced

• All resources are being used inefficiently

• All resources are variable

• Only two goods can be produced

Multiple Choice

What does a straight Production Possibilities Curve (PPC) indicate about opportunity cost?

• It varies with production

• It is constant

• It increases with production

• It decreases with production

Multiple Select

What are the three shifters of the PPC?

• Change in Resource quantity or quality

• Change in Technology

• Change in Trade

• Change in Demand

Multiple Choice

Explain the concept of shifts in the production possibility curve.

• Shifts in the production possibility curve are always linear and predictable

• Shifts in the production possibility curve are only theoretical and do not impact real-world economies

• Shifts in the production possibility curve represent an increase or decrease in potential output levels for an economy.

• Shifts in the production possibility curve are caused by changes in consumer preferences

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident