PPC Quizs

The Japanese tsunami of 2011 is an example of an event that caused the PPC to shift         , resulting in economic       .

• inward, decline

• outward, growth

• inward, growth

• outward, decline

Define a movement along a Production Possibility Curve (PPC).

• A change in the allocation of existing resources within an economy, such as moving from one combination of goods to another on the curve.

• An increase in the production capacity of an economy due to technological advancements.

• A shift of the entire Production Possibility Curve to the right due to economic growth.

• A decrease in the opportunity cost of producing one good over another.

An example of increasing the        of a factor of production is through training and education of labour.

• quantity

• efficiency

• quality

• cost

True or False?

Any point inside the PPC represents productive efficiency.

• True

• False

• Only at the origin

• Only on the curve

What do the axes on a typical PPC diagram usually represent?

• Labor and Land

• Capital Goods and Consumer Goods

• Technology and Resources

• Imports and Exports

A movement along the PPC occurs when there is a change in the                   of existing resources within an economy.

• allocation

• distribution

• production

• consumption

What causes an outward shift of the PPC?

• An increase in the quality or quantity of the factors of production, such as improvements in education or increased migration.

• A decrease in consumer demand for goods and services.

• A reduction in the workforce due to economic downturns.

• An increase in government regulations affecting production.

Define production possibility curve (PPC).

• A model that shows the relationship between the price and quantity of a good.

• An economic model that illustrates the maximum possible production of two goods or services using all available resources.

• A graphical representation of consumer preferences and choices.

• A tool used to measure the efficiency of a single good's production.

True or False?

An inward shift of the PPC always indicates economic growth.

• True

• False

• It indicates stable economic conditions.

• It indicates increased production capabilities.

Define a shift of a Production Possibility Curve (PPC).

• A change in the economy's demand for goods and services.

• A movement along the curve due to changes in resource allocation.

• A shift of a Production Possibility Curve (PPC) occurs when the entire curve moves outward or inward, representing a change in the economy's productive potential.

• An increase in the number of goods produced without changing resources.