PPF

If the production of good X increases by 3 units and production of good Y decreases by one unit, then the opportunity cost of one unit of X is ____ unit(s) of Y.

• 3
• 1
• 1/3
• 4

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

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

Land, Labor, Capital, and Entrepreneurship 

• Diversification
• Deductions
• Portfolio
• Factors of Production 

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

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

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

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

Which point represents an underutilization of a country's resources?

• B

• C

• A & D

• E

Combinations of goods outside the production-possibilities curve (PPC) have which of the following characteristics?

• They are the ideal place where the economy should be producing.
• They are not attainable given our existing stock of resources and technology.
•  They imply that some resources, such as labor, are unemployed or underemployed.
•  None of the above.

As we move from point A to point D,

• the opportunity cost of eggs in terms of bacon falls.
• the opportunity cost of eggs in terms of bacon rises.
• the opportunity cost of eggs in terms of bacon is constant.
• the economy becomes less efficient.