PRODUCTION POSSIBILITY CURVE

What is the abbreviation for PPC?

• Possibility Production Curve

• Production Possibility Curve

• Production Possible Choice

• Possibility Production Frontier

What does PPC show? Multiple answer.

• 2 products → we can ONLY produce two product per period

• Efficiency → operate with full employment and full production capacity

• normative economics

• various possible combinations of goods and services

Why do you think the curve shape is that way?

• Different types of resources have been utilized for both product

• Same types of resources have been utilized for both product

• without the resources have been utilized for both product

• some of the resources have been utilized for both product

Which one considered a choice?

• G

• F

• A,B,C,D

• E

Which coordinate is impossible to be produced?

• F

• G

• E

• A

Which coordinate is inefficient to produce both products?Multiple answer

• B

• F

• G

• E

Calculate the opportunity cost if choice A to D?

• Additional 90 tons of steel

• Letgo 90 tons of wheat

• Additional 70 tons of steel

• Letgo 65 tons of wheat

Calculate the opportunity cost of choice B to A

• Let go 55 tons of steel

• Let go 15 tons of wheat

• Additional 20 tons of wheat

• Additional 55 tons of steel

Which scenario contributes towards the shifting of the curve in the picture above?

• When a country is struck by a natural disaster, natural resources are either exhausted or reduced due to the incident.

• A population increase leads to increasing numbers of buyers and school admission.

• Economic decline due to Covid 19

• Inflation occurs and the price of goods had increased to support Malaysia's economy

Which of the following does NOT illustrate opportunity cost?

• I should buy a book rather than a food

• If I buy a computer, I must do without a 35” television

• If I spend a lot now means I will spend more in the future

• If I study today, I must give up going to the football game