Formative Production Possibilities curve

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

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

Which of the following would consumers MOST OFTEN need to consider when trying to make a rational economic decision? 

• The impact of government subsidies
• Potential opportunity costs
• Factors of Productions
• Net Exports

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

• 1 boat
• 2 boats
• 2 trucks
• 3 trucks

If a natural disaster strikes, the production possibilities curve can shift

• No shift
• To the left
• To the right
• Outward on one axis only

If a mass immigration occurs, the production possibilities curve can shift

• No shift
• To the left
• To the right
• Outward on one axis only

What can cause a production possibilities curve to move to the right?

• thousands of people move out of the country
• an epidemic kills thousands of young men and women
• a new invention lowers the cost of production
• the population is growing increasingly old

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs

Tradeoffs, Opportunity costs, marginal costs, marginal benefits, and personal priorities are all important to consider when

• Dealing with fiscal policy
• Using credit
• making a rational economic choice
• responding to monetary policy

David decides to start his own business. He opens a shop that manufactures sports equipment. He pays Frank an hourly wage to make baseball bats, and Gene a salary to manage his finances. Three days after his grand opening, he is ecstatic because Mike, who runs the town's parks and recreation department, calls him and orders equipment for six Little League baseball teams. Which of the following statements is TRUE?

• Davis is a producer, Frank is labor, Gene is the entrepreneur of the business, and Mike has just ordered capital goods.
• David is producer, Frank and Gene are consumers, and Mike has just made an investment.
• David is a the entrepreneur, Frank and Gene are both labor, and Mike is a consumer.
• Frank and Gene are both entrepreneurs, David is the owner, and Mike has just made a capital investment

What does point B represent?

• Production at greater than the country's minimum potential
• Production is less than the country's minimum potential
• Production is greater than the country's maximum potential
• Production at the country's maximum potential