Econ- 2.2 Part 2 Formative Assessment- Option 2

An increase in production technology can shift the PPC frontier___.

True or False- An increase in factors of production can shift the PPC frontier inward.

​ (a)  

• False
• True

What does a partial outward shift of the Production Possibilities Frontier (PPF) indicate?

• An increased ability to produce both goods/services

• A decreased ability to produce both goods/services

• An increased ability to produce only one of the goods/services

• A decreased ability to produce only one of the goods/services

Assume there is a country that produces only 2 goods- Good X and Good Y. Now assume the thousands of acres that were used to produce Good Y become unuseable because of an environmental disaster.

Which of the images shows the type of change on the PPC model that would occur?

• 
• 
• 
• 

Assume there is a country that produces only 2 goods—Good X and Good Y. Now assume a technological breakthrough occurs that increases the productivity of producing Good X.

Which of the images shows the type of change on the PPC model that would occur?

• 
• 
• 
• 

Assume there is a country that produces only 2 goods- Wheat and Aircraft Carriers. Now assume Climate change extends the growing season for wheat. Which of the images shows the type of change on the PPC model that would occur?

• 
• 
• 
• 

Assume there is a country that produces only 2 goods—Wheat and Aircraft Carriers. Now assume political instability leads to a decrease in the workforce for both wheat farming and shipbuilding..

Which of the images shows the type of change on the PPC model that would occur?

• 
• 
• 
• 

Assume there is a country that produces only 2 goods- Wheat and Aircraft Carriers. Now assume advances in automation increase aircraft carrier production.

Which of the images shows the type of change on the PPC model that would occur?

• 
• 
• 
•