PPC

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

What is the definition of the economic term Opportunity Cost?

• the value of the next best alternative that is given up due to the choice you made 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

Max is studying for his spelling test.  Unfortunately, his favorite TV program is on right now.  If he studies for the test, he will miss watching the show.  Max decides to study for his test instead of watching TV.  What is the opportunity cost of his decision?

• the benefit received from studying for a test
• The benefit of the A he may get
• the benefit of enjoying his favorite show
• the benefit of him spending time with friends at the movies

If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell?

• They are being over efficient
• There is an idle use of resources
• It is not impossible with the given resources
• They are still efficient, just at another point

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

What is the production possibilities curve?

• a graph that shows how efficient an economy can produce a combination of 2 goods
• a graph that shows how much money something is
• a graph that shows the opportunity a country has to give up in order to lose something else
• a visual representation of how land, labor, capital, entrepreneurs are distributed

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

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

The table above shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility? 

• 28 pizzas and 5 pairs of shoes
• 3 pairs of shoes and 23 pizzas
• 2 pairs of shoes and 20 pizzas
• 4 pairs of shoes and 15 pizzas

Based on the table, if the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.   

• 26
• 23
• 3
• 2