The Production Possibilities Curve

Front

What is the fundamental problem of every society? Options: labor costs, scarcity, economic interdependence, market fluctuation

Back

scarcity

Front

What is the definition of the economic term Opportunity Cost?

Back

the value of the next best alternative that is given up due to the choice you made 

Front

How do you satisfy your unlimited wants in a world of limited resources? Options: by making more money, by making choices, by stealing, by setting a budget

Back

by making choices

Front

If a point lies inside the curve, what does that tell?

Back

There is an idle, or unproductive, or use of resources

Front

What does point B represent?

Back

Production at the country's maximum potential

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

What is the production possibilities curve?

Back

a graph that shows how efficient an economy can produce a combination of 2 goods

Front

The production possibilities curve is an illustration of what?

Back

Opportunity costs and trade-offs

Front

If a point lies inside the curve, this tells the company what?

Back

They are not efficient.

Front

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

Back

3 boats