Econ Unit 1

The PPF shown demonstrates a(n) ____rate of opportunity cost.

• constant

• increasing

• confusing

• exponential

The PPF shown demonstrates a(n) ____rate of opportunity cost.

• constant

• increasing

• confusing

• exponential

The PPF BB is the current curve for country X. Which scenario could change the curve to AA?

• massive worker strikes at factories making capital and consumer goods

• increased fuel supply that is used in consumer and capital products

• an increase in making capital goods due to military conflict

• a decrease in making consumer goods only

The PPF BB is the current curve for country X. Which scenario could change the curve to CC?

• massive worker strikes at factories making capital and consumer goods

• increased fuel supply that is used in consumer and capital products

• an increase in making capital goods due to military conflict

• a decrease in making consumer goods only

What is the most likely reason the PPC is increasing in opportunity cost?

• there is no rhyme or reason to why curves look the way they do

• Good A and Good B are closely related

• Good A and Good B are unrelated

• uhh... what?!!

What is the opportunity cost of shifting from making 3 of Good A to 5 of Good A?

• 0

• 2

• 6

• 4

What is the production possibility of Good B when you are making 6 of good A?

• 0

• 2

• 6

• 4

What is the most likely reason Good A and Good B have a constant rate of opportunity cost?

• the products are unrelated

• the products are closely related

• the products must be capital and consumer goods

• uhhh.... yeah.

A point inside the curve would best be described as

• just sad

• impossible

• underutilization

• maximum potential loss

The opportunity cost of increasing from producing 0 of Good B to 6 of Good B is...

• 1 of Good A

• 2 of Good A

• 3 of Good A

• 0 of Good A