PPC Reading Pages 13-16

What factors should be considered when deciding whether to serve eggs or pancakes at a community breakfast fundraiser?

• The cost of ingredients and the number of workers

• The size of the kitchen and the time it takes to cook the food

• The weather and the time of the event

• The preferences of the community and the color of the tablecloths

What is a production possibilities curve?

• A graph that shows the maximum number of goods that can be produced given limited resources

• A graph that shows the relationship between the price of goods and consumer demand

• A graph that shows the history of a company's stock prices

• A graph that shows the different marketing strategies a company can use

Why do economists use graphs to analyze choices and trade-offs that people make?

• Because graphs can display complex data in a simple and understandable way

• Because graphs are easier to publish in reports and papers

• Because graphs can predict future economic trends accurately

• Because graphs are required by international economic regulations

What does the axes of a production possibilities curve show?

• The categories of goods and services, such as farm goods and factory goods or capital goods and consumer goods

• The preferences of consumers for different goods and services

• The profit margins for different sectors of the economy

• The geographical distribution of industries

What can increase the efficiency of a nation's production and lead to economic growth according to the image caption?

• New technology, such as robots

• Decreasing the number of workers in factories

• Increasing the prices of consumer goods

• Reducing the amount of capital goods produced

What does the production possibilities curve in Figure 1.3 show?

• The maximum number of shoes and watermelons that can be produced given unlimited resources

• The trade-offs and combinations of the production of shoes and watermelons

• The minimum number of shoes and watermelons that must be produced to sustain the economy

• The relationship between the price of shoes and the price of watermelons

Why is a production possibilities curve helpful to economists?

• It shows the relationship between supply and demand

• It shows how efficient an economy is

• It predicts future market trends for commodities

• It determines the exact price for goods and services

According to the table in the image, what is the maximum number of pairs of shoes that can be produced if no watermelons are produced?

• 5 million pairs

• 9 million pairs

• 15 million pairs

• 25 million pairs

What is the opportunity cost of producing more watermelons in terms of shoes according to the concept of the production possibilities frontier?

• The cost remains the same regardless of the number of watermelons produced

• The number of shoes that can be produced increases as more watermelons are produced

• The number of shoes that can be produced decreases as more watermelons are produced

• The opportunity cost is not related to the production of shoes

Based on Figure 1.4, what does point 'a' on the production possibilities frontier represent before economic growth?

• Production

  possibilities frontier

  before economic growth

• The production of 25 million pairs of shoes and no watermelons

• The production of 10 million tons of watermelons and 10 million pairs of shoes

• The point of underutilization