Opportunity cost and PPC

A company can use its current resources to produce hats and boots as shown in this production possibilities curve. Which of the following represents a movement from inefficiency to efficiency in this PPC?

• From T to S

• From V to T

• From S to V

• From S to R

• From S to U

The figure illustrates the production possibilities curve for a restaurants making kolaches and bowls of queso. Given the PPC shown, which of the following represents a movement from efficiency to inefficiency?

• From G to H

• From H to F

• From G to F

• From G to I

• From J to G

Flour is an ingredient used to make kolaches, but is not used to make queso. Which of these graphs shows what happens when the availability of flour increases?

• 
• 
• 
• 
• 

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

• 2/3 of a plate of boxty

• 3 plates of boxty

• 2 plates of boxty

• 1 plate of boxty

• 1.5 plates of boxty

What is the most basic problem of economics?

• Scarcity
• Allocation
• Productivity
• Specialization

What is it called when you choose between two possible uses for a resource, giving up one alternative for another?

• Trade Offs
• Real Costs
• Building materials
• Trading spaces

A popular bakery has only a few ingredients left to make their products.  They could bake muffins or cookies, but they can’t make both.  The bakers decide to make cookies for their customers.  What is the opportunity cost of their decision?

• muffins 
• cookies 

Joe was shopping for a truck. He has looked at similarly priced Ford, Chevrolet, Toyota, and
Ram models. After a lot of thought, he narrowed it down to either the Ford or the Chevrolet.
He selected the Ford because he liked the interior a little better. What was his opportunity
cost?

• Ford
• Chevrolet
• Toyota
• Ram

Opportunity Cost is best defined as

• the value of the next best alternative that is given up due to the choice you made 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision 

What is the production possibilities curve?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the opportunity one has to give up in order to gain something else
• land, labor, capital, entrepreneurs