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PPC - S3_Revision

Total questions: 50

Worksheet time: 38mins

Name
Class
Date
1.
What is the definition of the economic term Opportunity Cost?
a)
the value of the next best alternative that is given up due to the choice you made 
b)
The price you pay to purchase something 
c)
The benefit you gain by making a decision 
d)
The amount of debt you take on by making a decision 
2.

If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell?

a)

They are being over efficient

b)

They are being inefficient

c)

It is not impossible with the given resources

d)

They are still efficient, just at another point

3.

What does point B represent?

a)

Production at greater than the country's minimum potential

b)

Production is less than the country's minimum potential

c)

Production is greater than the country's maximum potential

d)

Production at the country's maximum potential

4.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
5.

Which letter represents the O.C. of moving from A to G?

a)

H

b)

I

c)

M

d)

K

e)

L

6.

Which letter represents the O.C. of moving from C to E?

a)

H

b)

I

c)

J

d)

K

e)

L

7.

Which letter represents the O.C. of moving from E to C?

a)

H

b)

I

c)

J

d)

K

e)

L

8.

Which letter represents the O.C. of moving from F to A?

a)

H

b)

I

c)

M

d)

K

e)

L

9.

Which letter represents the O.C. of moving from G to A?

a)

H

b)

I

c)

M

d)

K

e)

L

10.

What is the O.C. of moving from E to C?

a)

100 Ipads

b)

200 Iphones

c)

150 Ipads

d)

100 Iphones

11.

What is the O.C. of moving from B to D?

a)

100 Ipads

b)

200 Iphones

c)

150 Ipads

d)

100 Iphones

12.

What is the O.C. of moving from F to B?

a)

200 Ipads

b)

400 Iphones

c)

300 Ipads

d)

200 Iphones

13.

What is the Opportunity Cost of moving from C to A?

(a)  

14.

What is the Opportunity Cost of moving from B to E?

(a)  

15.

What is the Opportunity Cost of moving from C to A? (Think in the terms of what do we have to forgo in the process.)

(a)  

16.

What does PPC show? Select Multiple options.

a)

Describes the production of only two products in economy.

b)

It explains the production when there is full and efficient utilisation all resources in economy

c)

It explains the consumption pattern in economy

d)

It is the combination of all possible output points of two goods given that technology and resources are fixed.

17.

Which of the following are the choices in case the technology is fixed and all resources are efficiently employed. Choose the correct option/s.

a)

G

b)

C

c)

A

d)

E

e)

B

18.

A trade-off is

a)

always in the social interest

b)

the benefit you receive from an increase in an activity

c)

giving up one thing to get something else

d)

the key to reconciling self-interest and social interest

19.

Which of the following pairs does not match?

a)

Labour and wages

b)

Land and rent

c)

Entrepreneurship and profit

d)

Capital and profit

20.

Assume that a firm can produce 6 units of good X or 12 units of good Y per hour with its current resources. The opportunity cost of a unit of X is:

a)

72 units of Y

b)

12 units of Y

c)

6 units of Y

d)

2 units of Y

21.

Resources in an economy:

a)

Are always fixed.

b)

Are limited at any moment in time.

c)

Always increase over time.

d)

Can never decrease

22.

The sacrifice involved when you choose a particular course of action is called the:

a)

Alternative

b)

Consumer cost

c)

Opportunity cost

d)

Producer cost

23.

If an economy is productively efficient:

a)

More of one product can only be produced if less of another product is produced

b)

The distribution of income is equal

c)

Everyone is wealthy

d)

Resources are unemployed

24.

Economic growth can be shown by:

a)

An inward shift of the production possibility frontier

b)

A movement downward the production possibility frontier

c)

A movement up the production possibility frontier

d)

An outward shift of the production possibility frontier

25.

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

a)

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

b)

A population increase leads to increasing numbers of buyers and school admission.

c)

Economic decline due to Covid 19

d)

Inflation occurs and the price of goods had increased to support Malaysia's economy

26.

Which of the following does NOT illustrate opportunity cost?

a)

I should buy a book rather than a food

b)

If I buy a computer, I must do without a 35” television

c)

If I spend a lot now means I will spend more in the future

d)

If I study today, I must give up going to the football game

27.

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

a)

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

b)

Huge reduction in Construction Expenses and equipment manufacturing

c)

Economic decline due to Covid 19

d)

None of the above

28.

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

a)

6 units of honey.

b)

8 units of honey.

c)

12 units of bread.

d)

23 units of bread.

29.
If a natural disaster strikes, the production possibilities curve can shift
a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
30.
What can cause a production possibilities curve to move to the right?
a)
thousands of people move out of the country
b)
an epidemic kills thousands of young men and women
c)
a new invention lowers the cost of production
d)
the population is growing increasingly old
31.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
32.
The production possibilities curve is an illustration of what?
a)
Opportunity costs and trade-offs
b)
Only opportunity costs
c)
Only trade-offs
d)
none of the above
33.
Efficiency is producing the maximum possible output from available resources
a)
True
b)
False
34.
An increase in the labor force would cause the PPF to 
a)
Shift inward
b)
Shift outward
c)
Do nothing
d)
Turn into a straight line
35.
What does point B represent?
a)
Production at greater than the country's minimum potential
b)
Production is less than the country's minimum potential
c)
Productive inefficiency
d)
Productive efficiency
36.
Underutlization shows an economy that is
a)
inefficient
b)
maximizing production
c)
experiencing growth
d)
trading with other economies
37.
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.
a)
3
b)
1
c)
1/3
d)
4
38.
If many workers decide to retire at an early age, the PPF would shift inward.
a)
True
b)
False
39.
Which of the following might cause an inward shift of the PPF?
a)
A computer network shuts down due to a virus
b)
More people earn bachelor degrees
c)
A new maching that produces bread faster is invented
d)
OPEC announces a new source of oil
40.
The opportunity cost of increasing production from 4 to 7 boats is
a)
1 boat
b)
2 boats
c)
2 trucks
d)
3 trucks
41.
The opportunity cost of increasing production from 7 to 9 trucks is
a)
Scarcity
b)
2 boats
c)
2 trucks
d)
3 boats
42.
If a natural disaster strikes, the production possibilities curve can shift
a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
43.
What can cause a production possibilities curve to move to the right?
a)
thousands of people move out of the country
b)
an epidemic kills thousands of young men and women
c)
a new invention lowers the cost of production
d)
the population is growing increasingly old
44.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
45.
What does point Y represent on the PPC?
a)
Efficiency
b)
Unattainable / impossible
c)
Inefficency
d)
Nothing
46.

If there is improved technique of Production in both the goods , how will the PPC be affected?

a)

Leftward shift of PPC

b)

Rightward shift of PPC

c)

Rotation of PPC

d)

None of the above

47.

A country experiences a fall in unemployment. How would this be shown on a PPC diagram?

a)

A movement of the production point away from the curve

b)

A movement of the production point towards the curve

c)

A shift of the PPC to the left

d)

A shift of the PPC to the right

48.

Points B, D, and C represent ___________ use of resources.

a)

Ineffecient

b)

Efficient

c)

Unfeasible

49.

Point X represents an amount of production which is __________.

a)

Unfeasible

b)

Inefficient

c)

Efficient

d)

Well thought out

50.

Point A represents an __________ use of resources.

a)

Smart

b)

Inefficient

c)

Efficient

d)

Unfeasible