Free Printable 1.3 Production Possibility Curve

Worksheets

1.3 Production Possibility Curve

Total questions: 14

Worksheet time: 13mins

Name

Class

Date

What does PPC show? Multiple answer.

2 products → we can ONLY produce two product per period

Efficiency → operate with full employment and full production capacity

normative economics

various possible combinations of goods and services

Which scenario contributes towards the shifting of the curve in the picture above?

When a country is struck by a natural disaster, natural resources are either exhausted or reduced due to the incident.

Huge reduction in Construction Expenses and equipment manufacturing

Economic decline due to Covid 19

None of the above

The following diagram shows the production possibility frontier for an economy that produces bread and honey.

If the economy is initially at point W, then the opportunity cost of moving to point X is

6 units of honey.

8 units of honey.

12 units of bread.

23 units of bread.

If a natural disaster strikes, the production possibilities curve can shift

No shift

To the left

To the right

Outward on one axis only

What can cause a production possibilities curve to move to the right?

thousands of people move out of the country

an epidemic kills thousands of young men and women

a new invention lowers the cost of production

the population is growing increasingly old

What is the production possibilities curve?

a graph that shows how much an economy can produce between 2 goods

how much money something is

the opportunity one has to give up in order to gain something else

land, labor, capital, entrepreneurs

The production possibilities curve is an illustration of what?

Opportunity costs and trade-offs

Only opportunity costs

Only trade-offs

none of the above

Efficiency is producing the maximum possible output from available resources

True

False

An increase in the labor force would cause the PPF to

Shift inward

Shift outward

Do nothing

Turn into a straight line

10.

What does point B represent?

Production at greater than the country's minimum potential

Production is less than the country's minimum potential

Productive inefficiency

Productive efficiency

11.

Underutlization shows an economy that is

inefficient

maximizing production

experiencing growth

trading with other economies

12.

If the production of good X increases by 3 units and production of good Y decreases by one unit, then the opportunity cost of one unit of X is ____ unit(s) of Y.

1/3

13.

If many workers decide to retire at an early age, the PPF would shift inward.

True

False

14.

Which of the following might cause an inward shift of the PPF?

A computer network shuts down due to a virus

More people earn bachelor degrees

A new maching that produces bread faster is invented

OPEC announces a new source of oil

Reset

1.3 Production Possibility Curve

Total questions: 14

Worksheet time: 13mins

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