PP CURVE

If Mr. Clifford produces 2 videos, how many hats can he produce with his remaining resources?

• 29

• 0

• 25

• 30

A production possibilities curve is sometimes referred to a production possibilities frontier.

• a.  True

• b. False

Opportunity costs on a PPC refers to the number of products you are giving up or losing?

• a. False

• b. True

What is the opportunity cost of moving from point B to point C on the PPC? 

• 1 hat

• 1 video

• 4 hats

• 4 videos

Is producing 2 videos and 20 hats efficient? 

• Yes

• No

If your production lands anywhere on the curve you are utilizing your resources in the most effective way.

• A. False

• b.  True

What is the opportunity cost from E to D? 

• 15 Videos

• 1 Video

• 15 Hats

• 1 Hat

If you were a farmer it would be in your best interest to

• a.  grow cactus and pineapples.

• b.  grow corn and wheat.

The opportunity cost of producing more Pineapples is _________ because Cactus and Pineapple production use _________ resources. 

• decreasing; specialized

• increasing; identical

• decreasing; identical

• increasing; specialized

Will Mr. Clifford have any luck selling his hats?  Explain your answer.  Must have at least one complete sentence.