PPF/PPC Intro Practice Quiz

What does PPF stand for?

• Production Possibility Field

• Possibility of Production Frontier

• Production Possibility Frontier

• Please Play Fairly

Which of the following is the best definition for 'opportunity costs'

• The cost of starting an business opportunity.

• The potential benefits that are missed out on when choosing one alternative over another.

• The cost of choosing to go to university or work in a restaurant.

• A set of circumstances that make it possible to optimise and opportunity.

Which of the following best describes the PPF?

• It shows the maximum output levels of two goods.

• It represents the demand and supply curves for a single product, using available resources and technology.

• It illustrates the total resources available in an economy, using available resources and technology.

• It shows the different combinations of output of two goods that can be produced using available resources and technology.

What is the 'Law of Increasing Opportunity Cost'?

• As you produce more of any good, the opportunity cost will decrease.

• As you produce more of any good, the opportunity cost will increase.

• The opportunity cost of producing a good remains constant regardless of the quantity produced.

• The opportunity cost of producing a good is always zero.

What does 'Scarcity' refer to in economics?

• The lack of sufficient products to fulfill the total wants of the population.

• The abundance of resources in an economy.

• The unlimited wants of people.

• The availability of multiple alternatives in an economy.

What does 'Economic Efficiency' refer to?

• The situation where all resources in an economy are being used to their full potential.

• The situation where resources are being wasted.

• The situation where resources are being used to produce goods and services that are not needed.

• The situation where resources are being used to produce goods and services that are in high demand.

The maximum production possibility for pizzas is

(a)  

The maximum production possibility for burgers is

(a)  

Which ratio best describes the production possibility of pizzas to burgers?

• 20: 40

• 2:1

• 1: 0.5

• 1:2

Which ratio best describes the production possibility of burgers to pizzas?

• 40:20

• 2:1

• 1:0.5

• 1:2