WorksheetsIntro to Economic Models #1
Total questions: 15
Worksheet time: 8mins
SELECT ALL: Which of these is an example of a scarce resource?
Land
Spaceships
Chairs
Money
Economists use models to simplify complicated real-world situations and demonstrate relationships between values.
True
False
This is an example of an economic model called a______________
Production Possibilities Curve
Supply & Demand
Laffer Curve
Circular Flow Model
SELECT ALL: The Production Possibilities Curve (PPC) represents:
The alternative ways to use an economy's productive resources
The effects of scarcity, efficiency, and opportunity cost.
An economy that only produces 2 goods
Full, fixed resources & technology
The slope of a PPC represents opportunity cost:
True
False
Points B, D, and C represent __________ use of resources
Efficient
Inefficient
Unfeasible
Impossible
Point X represents an amount of production which is __________.
Efficient
Inefficient
Unfeasible
Impossible
Point A represents an __________ use of resources.
Efficient
Inefficient
Unfeasible
Impossible
Which factors could cause an increase the productive capacity of the PPC?
Adding land, labor, and capital
Losing land, labor, and capital
Shifting supply & demand curve
Decreasing GDP during a recession
Which factors could cause a decrease in the productive capacity of the PPC?
Adding land, labor, and capital
Losing land, labor, and capital
Shifting supply & demand curve
Decreasing GDP during a recession
What is the opportunity cost of moving from production from point C to D?
25 units of food
50 units of clothes
100 units of food
75 units of clothes
What is the opportunity cost of moving from production from point C to B?
100 units of clothes
25 units of food
100 units of food
75 units of clothes
What is the opportunity cost of moving from production from point B to D?
50 units of food
25 units of food
100 units of clothes
150 units of clothes
Predict: What would have to happen to achieve production at point F?
Build more factories & hire more workers
Factories get destroyed by fire
Employees get killed in a fire
There is a shortage of materials used to make shoes and food
Predict: What would have to happen to make point E efficient?
Build more factories & hire more workers
Factories get destroyed by fire
Immigration leads to population increase
Land becomes more productive
