Topic 1.3 Production Possibilities Curves

If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell?

• they are using more resources than they actually have

• There is an idle or unproductive use of resources

• It is not possible with the given resources

• They are still efficient, just at another point

Point D on this graph would be an example of....

• underutilization of resources

• efficiency

• economic growth

• trade-off

Point E on this graph is...

• not possible with the current technologies, available workers, or resources

• the most efficient use of resources

• the most consumer goods possible

• scarcity

The opportunity cost of increasing production from 4 to 7 boats is

• 1 boat
• 2 boats
• 2 trucks
• 3 trucks

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 the meaning of efficiency?

• reserving or saving all of your resources

• using all your resources in a way that maximizes the output of goods and services

• selling all your goods and services at the highest price possible to maximize profit

• using a large amount of your resources, but saving some

Points B, D, and C represent ___________ use of resources.

• Ineffecient

• Efficient

• Unfeasible (impossible)

Which factors could cause a decrease in the productive capacity of the PPC?

• adding citizens into the workforce

• The loss of land, labor, or capital

• the invention of new technologies and machines

What is the opportunity cost of moving from production from point B to D?

• 100 units of food

• 25 units of food

• 35 units of clothes

• 50 Units of food

What is the opportunity cost of moving from production from point D to B?

• 35 units of food

• 1,000 units of clothes

• 150 units of clothes

• 100 units of clothes