Crash Course 2 PPF

What is the purpose of the production possibilities frontier (PPF) graph in economics?

• To analyze international trade policies

• To measure consumer demand

• To predict future economic trends

• To show the efficiency of resource allocation

What is the purpose of a model?

• Models are visuals to help us simplify and explain concepts.

• Models ensure that aircraft can fly before we get on them.

• Models ensure that clothing is wearable before regular people buy them.

• Models make complicated ideas more complicated.

What does PPF stand for?

• production possibilities frontier

• positive position function

• proper paper flapper

• projected product framework

What is the big idea that the PPF is trying to convey?

• There are trade-offs between producing two goods, and that same logic applies for any number of goods.

• If you study only two things with the PPF, then economics will collapse.

• Emus rock!

• Positive position functioning can be used to predict more stable economic models.

Any combination of goods that lives inside the PPF curve is ...

• inefficient

• efficient

• impossible

• an imaginary construct that attempts to reconcile the vast distance between the ideas of capitalism and communism

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

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

What is opportunity cost?

• 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 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