PPC?PPF Reading Review

What is the significance of the Robinson Crusoe economy model?

• It shows economic growth

• It illustrates a one-person economy

• It predicts future markets

• It measures inflation

What does the PPF model use to show economic possibilities?

• A pie chart

• A line graph

• A bar graph

• A scatter plot

What is the average number of coconuts Crusoe can harvest per hour?

• 5 coconuts

• 10 coconuts

• 15 coconuts

• 20 coconuts

What does the sloping line on the graph represent?

• The maximum number of coconuts only

• The maximum number of fish only

• Various combinations of coconuts and fish

• The time taken to gather resources

What is required to produce more than the combinations shown on the line graph?

• More land

• Better tools or more time devoted to food gathering

• More workers

• More money

What happens to the production possibilities curve in a more complex example?

• It remains straight

• It bows outward in a curve

• It bows inward in a curve

• It becomes a zigzag

At point C on the graph, how many coconuts and fish are produced?

• 10 coconuts, 10 fish

• 20 coconuts, 20 fish

• 30 coconuts, 10 fish

• 40 coconuts, 0 fish

What is the main factor limiting Crusoe's production according to the text?

• Lack of land

• Lack of labor

• Lack of better tools or time

• Lack of money

What is the tradeoff at Point C for Crusoe?

• Gain of 10 coconuts for 10 fish

• Loss of 20 coconuts for a gain of 20 fish

• Gain of 30 coconuts for 10 fish

• Loss of 10 coconuts for a gain of 30 fish

What can a PPF be used to measure?

• The total population of a country

• The opportunity costs of different production choices

• The number of factories in a region

• The amount of rainfall in a year