PPC/PPF

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

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

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

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

What does point Y represent on the PPC?

• Efficiency
• Unattainable / impossible
• Inefficency
• Nothing