The term "Production possibility" means

• production level that is possible

• endless capabilities of a country

The word , "frontier" means:

• limits given

• border

• line

• boundary

• All of the above

There is a limit to the amount of each good that can be produce or service being offered because of:

• people's preference

• scarcity

• unlimited resources

The production possibility frontier is also known as a

• curve

• boundary

• All of the above

The PPF is a ----------- that shows the combination of two goods that a country can produce using fixed resources and technology.

• line

• picture

• graph

The PPF is used a _____ to represent real life decision making or situation.

• model

• graph

• table

Only Two goods are used on the graph because

• the chosen goods will be the options from which decisions will be made

• society has enough resources

Scarcity of resources will be evident when the country

• cannot produce beyond the boundary

• produces on the boundary

Production efficiency will be evident when...

• maximum amount of both goods are produced, which is on the curve

• goods are produced inside of the curve

Underemployment of resources will occur when....

• Too much of the resources are used

• resources are left to idle