PPC/Comparative Advantage

What is the most basic problem of economics?

• Scarcity
• Allocation
• Productivity
• Specialization

What does point Y represent on the PPC?

• Efficiency

• Growth

• Inefficency

• Nothing

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

The production possibilities curve is an illustration of what?

• Opportunity costs and trade-offs
• Only opportunity costs
• Only trade-offs
• none of the above

A focus on developing only certain skills or producing only certain goods/services

• Imports
• Exports
• Specialization
• Globalization

If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell?

• They are being over efficient
• There is an idle use of resources
• It is not impossible with the given resources
• They are still efficient, just at another point

What does point B represent?

• Production at greater than the country's minimum potential
• Production is less than the country's minimum potential
• Production is greater than the country's maximum potential
• Production at the country's maximum potential

The process through which an economy's production possibility curve is shifted outward is:

• comparative advantage.

• economic growth.

• full employment.

• specialization.

Technological improvements will:

• shift the production possibility curve outward.

• leave the production possibility curve unchanged.

• shift the production possibility curve inward.

• increase the slope of the production possibility curve.

All points inside the production possibility curve represent:

• efficient production points.

• inefficient production points.

• non-feasible production points.

• economic growth.