Production Possibilities- EconMovies #3: Monsters Inc (Reupload)

Mr. Clifford introduces EconMovies using Monsters Inc. to explain economic concepts like scarcity, factors of production, and the production possibilities curve (PPC). The video discusses consumer and capital goods, the scream shortage in Monstropolis, and how technological advancements can shift the PPC. It concludes with encouragement to understand economic graphs.

What are the factors of production mentioned in the video?

• Land, labor, capital, and entrepreneurship

• Land, labor, money, and entrepreneurship

• Land, labor, technology, and entrepreneurship

• Land, labor, capital, and technology

What does the production possibilities curve (PPC) illustrate?

• The resources needed for production

• The maximum output of a single good

• The trade-offs between two different goods

• The cost of producing one good

What is the main difference between consumer goods and capital goods?

• Consumer goods are produced faster than capital goods

• Consumer goods are for direct consumption, while capital goods are for indirect consumption

• Consumer goods require more resources than capital goods

• Consumer goods are more expensive than capital goods

What happens to the production possibilities curve when a resource becomes less productive?

• The curve shifts outward

• The curve shifts inward

• The curve remains unchanged

• The curve becomes a straight line

How does new technology affect the production possibilities curve?

• It makes the curve steeper

• It shifts the curve outward

• It shifts the curve inward

• It flattens the curve