Economics Videos- Production Possibilities Curve: Econ Concepts in 60 Seconds

The video tutorial by Clifford from ACDC Econ explains the production possibilities curve, focusing on constant and increasing opportunity costs. Using examples of pizzas and calzones, the video illustrates constant opportunity cost with a one-to-one trade-off. It then shifts to pizzas and robots to demonstrate increasing opportunity costs, where resources are not easily adaptable. The tutorial concludes with a detailed explanation of resource allocation and its impact on opportunity costs.

What does a straight-line production possibilities curve indicate about opportunity cost?

• Increasing opportunity cost

• Constant opportunity cost

• Decreasing opportunity cost

• Variable opportunity cost

Why do pizzas and robots have an increasing opportunity cost?

• Because they are both technological items

• Because they are both food items

• Because resources are not easily adaptable between them

• Because they use identical resources

What happens to opportunity cost as more robots are produced?

• It increases

• It becomes zero

• It decreases

• It remains constant

Why is the first robot produced with minimal loss of pizzas?

• Because all resources are equally good at making robots

• Because resources better suited for robots are used first

• Because robots are easier to make

• Because pizzas are not in demand

What is the main reason for the high opportunity cost when producing the last robot?

• All resources are equally efficient

• Resources better suited for pizzas are used

• Pizzas are less valuable

• Robots are more valuable