Production Possibility Curves

If an economy would increase their resources, it would create

• Underutilization

• The Future Production Possibility Curve

• Minimum Output

• Maximum Output

The production possibility curve (frontier) shows maximum efficiency

• True

• False

Any point under the production possibility curve is called

• Maximum Output

• Future Production

• Current Production

• Underutilization

A production possibility curve shows the relationship between the production of

• Two farm goods

• Two factory goods

• Any two goods

• One farm and one factors good

Any point along the production possibility curve (frontier) is a point of efficiency

• True

• False

Production possibility curves assume that resources are infinite

• True

• False

Which of the following graphs represents a trade off?

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Which graph represents the following scenario?

A café chooses to hire more workers.

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Which graph represents the following scenario?

A café must pay more for coffee beans.

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Which graph represents the following scenario?

A café must pay more for sugar, an ingredient in both coffee and tea

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