Production Possiblities Curve

The graph above shows an economy's production possibilities frontier for the production of two goods, X and Y. Assume that the economy is currently at point B. The opportunity cost of moving from point B to point C is

• AH units of good Y

• HG units of good Y

• OG units of good Y

• EF units of good X

• OF units good X

An outward shift in the production possibilities curve of an economy can be caused be an increase in

• unemployment

• the labor force

• inflation

• output

• demand

According to the graph above, if a country is currently producing at point X, the opportunity cost of producing another consumer good is

• 20 capital goods

• more than 20 capital goods

• fewer than 20 capital goods

• 20 consumer goods

• fewer than 20 consumer goods

Which of the following statements best describes opportunity costs?

• The price to a consumer of a good or service

• The cost a buyer sees for something they want

• The value of things given up when a decision is made.

• The tradeoffs faced when choosing how to use a scarce resource

• The monetary cost of any economic transaction

Which of the following best explains why a PPC for ice cream and scooters is bowed outward from the origin?

• The resources used to produce scooters and ice cream are equally suited to producing scooters and ice cream

• The production of scooters and ice cream is inefficient.

• The resources used to produce scooters and ice cream are not interchangeable.

• The opportunity cost of increasing production of scooters or ice cream is constant at any level of production.

• Production of scooters and ice cream is efficient.

Which of the following statements about the change shown in Xamś PPC are true?

• Xam now has more resources or technology to produce more fruit smoothies, but not fast cars

• Xam now has more resources or technology available to produce more fast cars, but not fruit smoothies

• Xam has fewer resources or technology to produce fruit smoothies and fast cars

• Xam's resources or technology have not changed

• Xam now has more resources or technology available that can produce either fast cars or fruit smoothies

What happens to each producer’s opportunity cost of fresh baked bread as more bread is produced?

• Jeff’s decreases; Mita’s increases

• Jeff’s increases; Mita’s increases

• Jeff’s increases; Mita’s stays the same

• Jeff’s stays the same; Mita’s stays the same

• Jeff’s decreases; Mita’s decreases

What is the opportunity cost of one ton of apples in Country X?

• 4,000 bales of wool

• 250 bales of wool

• 0.025 bales of wool

• 100 bales of wool

• 40 bales of wool

What is the opportunity cost of a scary mask?

• 4/5 model car

• 1.25 model cars

• 20 model cars

• 0.80 model cars

• It depends on where we are currently producing

Based on the production possibilities curve (PPC) shown here, what is the opportunity cost of ONE bowl of colcannon when a producer increases colcannon production from 9 bowls to 11 bowls?

• 3 plates of boxty

• 1 plate of boxty

• 1.5 plates of boxty

• 2/3 plates of boxty

• 2 plates of boxty