Production Possibilities and More

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

• 28 pizzas and 5 pairs of shoes

• 3 pairs of shoes and 23 pizzas

• 2 pairs of shoes and 20 pizzas

• 4 pairs of shoes and 15 pizzas

Based on the table, if the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.   

• 26
• 23
• 3
• 2

What is opportunity cost?

• a graph that shows how much an economy can produce between 2 goods
• how much money something is
• the best opportunity one has to give up in order to gain something else

• land, labor, capital, entrepreneurs

What phrase does an economist use to describe Land, Labor, Capital, and Entrepreneurship 

• Portfolio Diversification

• Goals of Society

• Maximum Resources

• Factors of Production 

The opportunity cost of increasing production from 7000 trucks to 9000 trucks is

• Scarcity
• 3 boats

• 2000 trucks

• 3000 boats

The opportunity cost of increasing production from 4000 boats to 7000 boats is

• 3000 trucks

• 3000 boats

• 2 trucks
• 2000 trucks

Efficiency is producing the maximum possible output from available resources

• True
• False

What do any points inside the Production Possibilities Curve indicate?

• The combination of goods that are efficient

• The combination of goods that employ resources fully
• The combination of goods that do not employ resources fully
• The combination of goods and spending that will overheat the economy

An increase in the labor force would cause the Production Possibilities Curve to 

• Shift inward
• Shift outward
• Do nothing
• Turn into a straight line