Production Possibilities Curve

This is an example of an economic model called a ____________

• Production Possibilities Curve

• Intro. to Economics Curve

• Latter Curve

• Circular Flow Curve

Points B, D, and C represent ___________ use of resources.

• Ineffecient

• Efficient

• Unfeasible

Point X represents an amount of production which is __________.

• Unfeasible

• Inefficient

• Efficient

• Well thought out

Point A represents an __________ use of resources.

• Smart

• Inefficient

• Efficient

• Unfeasible

Which factors could cause an increase the productive capacity of the PPC?

• Adding land, labor, and capital

• Losing land, labor, and capital

Which factors could cause a decrease the productive capacity of the PPC?

• Adding land, labor, and capital

• Losing land, labor, and capital

What is the opportunity cost of moving from production from point B to D?

• 100 units of food

• 25 units of food

• 35 units of clothes

• 50 Units of food

What is the opportunity cost of moving from production from point D to B?

• 35 units of food

• 1,000 units of clothes

• 150 units of clothes

• 100 units of clothes

Predict: What would have to happen to achieve production at point F?

• Build more factories & hire more workers

• Factories get destroyed by fire

• There is a shortage of materials used to make shoes and food

• Get more educated leadership.

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