Scarcity, Opportunity Cost and PPC_2025

What does scarcity necessitate?

• Opportunity Cost

• Choice

• Consumption

• Production

What is the opportunity cost of increasing production of Good A from zero units to one unit in Figure 2.1?

• 1 unit(s) of Good B

• 2 unit(s) of Good B

• 3 unit(s) of Good B

• 4 unit(s) of Good B

What is the opportunity cost of increasing production of Good A from one unit to two units in Figure 2.1?

• 3 unit(s) of Good B

• 2 unit(s) of Good B

• 1 unit(s) of Good B

• 4 unit(s) of Good B

What is the opportunity cost of increasing production of Good A from two units to three units in Figure 2.1?

• 4 unit(s) of Good B

• 3 unit(s) of Good B

• 2 unit(s) of Good B

• 1 unit(s) of Good B

What type of opportunity cost per unit does Figure 2.1 represent for Good A?

• Constant

• Increasing

• Decreasing

• Zero

What is the opportunity cost of increasing production of Good A from zero units to one unit in Figure 2.2?

• 1 unit(s) of Good B

• 2 unit(s) of Good B

• 3 unit(s) of Good B

• 4 unit(s) of Good B

What is the opportunity cost of increasing production of Good A from one unit to two units in Figure 2.2?

• 1 unit(s) of Good B

• 2 unit(s) of Good B

• 3 unit(s) of Good B

• 4 unit(s) of Good B

What is the opportunity cost of increasing production of Good A from two units to three units in Figure 2.2?

• 6 unit(s) of Good B

• 3 unit(s) of Good B

• 2 unit(s) of Good B

• 4 unit(s) of Good B

What type of opportunity cost per unit does Figure 2.2 represent for Good A?

• Decreasing

• Increasing

• Constant

• Zero

Which curve in Figure 2.6 would represent the new production possibilities curve if there is a major technological breakthrough in the consumer-goods industry?

• BB'

• A'B'D'

• A'B'

• B'D'