WorksheetsProduction Possibilities Curve
Total questions: 10
Worksheet time: 5mins
What does the production possibilities curve illustrate?
The law of demand
The concept of scarcity
The concept of elasticity
The law of supply
What does a point inside the production possibilities curve indicate?
Unattainable combination
Economic growth
Underutilization of resources
Efficiency
What does a bowed out production possibilities curve indicate?
No opportunity cost
Constant opportunity cost
Increasing opportunity cost
Decreasing opportunity cost
What does a straight line production possibilities curve indicate?
Constant opportunity cost
Increasing opportunity cost
Decreasing opportunity cost
No opportunity cost
What does a point outside the production possibilities curve indicate?
Underutilization of resources
Efficiency
Economic growth
Unattainable combination
What causes the production possibilities curve to shift?
No change in resources
Decrease in resources
Increase in resources
Decrease in technology
What does a combination on the production possibilities curve indicate?
Economic growth
Underutilization of resources
Full employment
Unemployment
What is the memory device for understanding the production possibilities curve?
The hat
The glove
The double pencil
The shoe
What is the concept used to calculate the specific number of squares given up when producing a certain number of triangles?
Opportunity cost
Trade-offs
Efficiency
Scarcity
What does a graph with a bowed out production possibilities curve indicate about opportunity cost?
Constant opportunity cost
Increasing opportunity cost
Decreasing opportunity cost
No opportunity cost
