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WorksheetsProduction Possibility Frontier
Total questions: 11
Worksheet time: 6mins
The term "Production possibility" means
production level that is possible
endless capabilities of a country
The word , "frontier" means:
limits given
border
line
boundary
All of the above
There is a limit to the amount of each good that can be produce or service being offered because of:
people's preference
scarcity
unlimited resources
The production possibility frontier is also known as a
curve
boundary
All of the above
The PPF is a ----------- that shows the combination of two goods that a country can produce using fixed resources and technology.
line
picture
graph
The PPF is used a _____ to represent real life decision making or situation.
model
graph
table
Only Two goods are used on the graph because
the chosen goods will be the options from which decisions will be made
society has enough resources
Scarcity of resources will be evident when the country
cannot produce beyond the boundary
produces on the boundary
Production efficiency will be evident when...
maximum amount of both goods are produced, which is on the curve
goods are produced inside of the curve
Underemployment of resources will occur when....
Too much of the resources are used
resources are left to idle
The PPF can be used to show concepts such as scarcity, choice, opportunity cost, efficiency and inefficiency.
True
False
