Economics AS Level Ch 1 Basic Economic Ideas pt. 2

Production Possibility Curve (PPC) is a diagram to show?

• The trade-off of resources in producing two different goods

• The negative relationship between output and price

• The opportunity cost between one resource

A concave PPC shows a/an ___________ opportunity costs

• Increasing

• Decreasing

The PPC concave-shaped shows that available resources may not be transferrable to produce the other goods/services (immobile)

• True

• False

The dilemma faced by developing countries is to choose between _______ and ______ goods

(a)  

What would happen if the economy focuses on producing consumer goods now than capital goods? Explain the short-term and long-term effect(s)!

What are the functions of money?

• Medium of exchange

• A standard for deferred payment

• Unit of account

• Store of wealth

• Power in economy

Private goods are

• Goods that can be used privately

• Goods that can set people apart from the benefit

• Goods that can have its benefit reduced when more people consume it

• Goods that make someone superior

Which of these scenarios causes the PPC to shift outwards?

• Training for the employees

• An invention to improve machinary output

• A natural disaster

• Re-arranging factury layout

What could be the possible reason when PPC move from PPC3 to PPC4?

If this is the production of peanut and potato in Indonesia. What would be the shape of its PPC? And explain the possibility of this movement. Please draw the diagram and send it through WA chat.