PPC/F, Opportunity Cost, Demand and Supply

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity

• 2 boats

• 2 trucks

• 3 boats

The opportunity cost of increasing production from 4 to 7 boats is

• 1 boat

• 2 boats

• 2 trucks

• 3 trucks

Any point on the Production Possibilities Frontier represents

• Underutilization

• Unattainable Level of Production

• Efficiency

• Inefficiency

Land, Labor, Capital, and Entrepreneurship are

• Diversification

• Deductions

• Economy

• Factors of Production

What does point Y represent on the PPC?

• Efficiency

• Unattainable / impossible

• Nothing

• Inefficiency

Which phrase could be used to describe a PPC shifting outward?

• Resources wasted or idle

• Economic Growth

• Inefficient use of resources

• A decrease in demand for a product

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods

• the opportunity one has to give up in order to gain something else

• how much money something is worth

• and, labor, capital, entrepreneurs

Roman is offered a free ticket to the opera. His opportunity cost of going to the opera is:

• zero—the tickets were free.

• the price listed on the ticket.

• the price listed on the ticket plus whatever Roman would have done had he not gone to the opera.

• whatever Roman would have done had he not gone to the opera.

Suppose the economy is operating at point B. The opportunity cost of producing the third freight train would be:

• 19 tons of sugar.

• 45 tons of sugar.

• 80 tons of sugar.

• 180 tons of sugar.

Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be:

• 19 tons of sugar.

• 45 tons of sugar.

• 80 tons of sugar.

• 3 freight trains.