The Production Possibilities Frontier, pt. 1 video-quiz

What does the term "frontier" refer to in the context of economics?

• The outer limit of economic production

• The center of a city

• The beginning of a business

• The middle of a country

Which economic model is used to represent the outer limit of production?

• Production Possibilities Frontier (PPF)

• Supply and Demand Curve

• Circular Flow Model

• Market Equilibrium Model

How can the PPF be easily shown?

• On a graph

• In a paragraph

• Through a poem

• By a song

What are the two goods produced by Econ Isle?

• Widgets and gadgets

• Food and clothing

• Oil and water

• Cars and computers

What type of resources does Econ Isle use to produce goods?

• Capital resources

• Only natural resources

• Only imported resources

• Only labor resources

Which of the following best describes the PPF?

• A model showing the maximum possible output combinations of two goods

• A list of all possible products

• A chart of population growth

• A table of government spending

Why might the PPF be curved rather than a straight line?

• Because resources are not perfectly adaptable to producing both goods

• Because the economy is closed

• Because there are only two goods

• Because it is a simplified model

What does the PPF illustrate about opportunity cost?

• Producing more of one good requires giving up some of the other good

• All resources are unlimited

• There is no trade-off in production

• Only one good can be produced at a time

Why is Econ Isle unable to consume more than it produces?

• It is a closed economy

• It has unlimited resources

• It imports everything

• It exports everything

What is the role of human resources in production?

• To provide labor for producing goods and services

• To supply natural resources

• To manage imports and exports

• To create new land