The Production Possibilities Curve

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 does point Y represent on the PPC?

• Efficiency
• Unattainable / impossible
• Inefficency
• Nothing

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

• True
• False

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

What is the production possibilities curve?

• a graph that shows how efficient an economy can produce a combination of 2 goods
• a graph that shows how much money something is
• a graph that shows the opportunity a country has to give up in order to lose something else
• a visual representation of how land, labor, capital, entrepreneurs are distributed

What does point B represent?

• Production at greater than the country's minimum potential

• Production is less than the country's minimum potential

• Production is greater than the country's maximum potential

• Production at the country's maximum potential

If many workers decide to retire at an early age, the PPF would shift inward.

• True
• False

Suppose that a new machine that speeds up automotive production is introduced into the auto industry. This would cause the PPF to

• Shift outward
• Shift inward
• Do nothing
• Not enough information is provided

The production possibilities curve is an illustration of what?

• Opportunity costs and trade-offs
• Only opportunity costs
• Only trade-offs
• none of the above

What is the definition of the economic term Opportunity Cost?

• the value of the next best alternative that is given up due to the choice you made 
• The price you pay to purchase something 
• The benefit you gain by making a decision 
• The amount of debt you take on by making a decision