Understanding Resource Allocation and Economic Well-being

What does the production possibilities curve (PPC) illustrate?

• The trade-offs and choices societies face in resource allocation

• The exact amount of resources available in an economy

• The distribution of goods and services among individuals

• The total population of a society

What does a steeper slope on the PPC indicate?

• Higher opportunity cost for producing one good over another

• Lower opportunity cost for producing one good over another

• Equal opportunity cost for all goods

• No opportunity cost involved

What does operating inside the PPC signify?

• Underutilization of resources

• Efficient use of resources

• Overutilization of resources

• Optimal economic performance

What can cause an outward shift in the PPC?

• Improved technology

• Natural disasters

• Depletion of resources

• Decline in the labor force

What is not addressed by the PPC?

• Distribution of goods and services among individuals

• Maximum possible output combinations of two goods

• Opportunity cost of resource allocation

• Efficient use of resources