PPC curve

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.

• True
• False

What is the production possibilities curve?

• 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

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

Land, Labor, Capital, and Entrepreneurship 

• Diversification
• Deductions
• Portfolio
• Factors of Production 

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

Movement down the PPF curve indicates that the opportunity cost of more capital goods is producing more consumer goods

• True
• False

Efficiency is producing the maximum possible output from available resources

• True
• False

What do points inside the PPF indicate?

• The combination of goods that employ goods efficiently
• The combination of goods that employ resources fully
• The combination of goods that do not employ resources fully

An increase in the labor force would cause the PPF to 

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