WorksheetsProduction Possibility Curve Quiz
Total questions: 10
Worksheet time: 8mins
The diagram shows a production possibility curve (PPC) for digital televisions and CD players. Which movement shows an increase in the use of existing resources to increase production for both digital televisions and CD players?
X to W
X to Z
Z to W
Z to Y
The diagram shows the production possibility curve (PPC) for an economy producing consumer goods and capital goods. The economy is currently producing OM consumer goods and OG capital goods. It decides to increase production of capital goods to OH. What is the opportunity cost of this decision in terms of consumer goods?
JG
ML
MN
NL
The diagram below shows a country producing at point X. What is the opportunity cost of moving production to point Y?
34 basic goods
17 luxury goods
12 basic goods and 3 luxury goods
zero goods
The diagram shows a production possibility curve (PPC) for a country. The country moved from position X to position Y on the PPC. What is the most likely reason for this change?
Firms have decided to increase investment in technology.
New economic resources have been discovered in the country.
The government has encouraged long-term economic growth.
The government has brought about an increase in living standards.
What does a point on a production possibility curve for an economy represent?
maximum output possible with current technology
economic growth is falling
total demand for goods and services
inefficient use of resources available
A country’s production possibility curve (PPC) moves from PPC1 to PPC2. What could cause this movement in the PPC?
The production possibility curve of a country has shifted from PPC1 to PPC2. What could have caused this shift?
a decrease in the rate of unemployment
a fall in the birth rate
improved education
outdated technology not being replaced
The diagram shows the choices for an individual between leisure and earnings. The person decides to take a job that gives more leisure time. What is the opportunity cost to the individual of moving from position Y to position X?
$20
$80
4 hours of leisure per day
12 hours of leisure per day
Which points in the diagram are attainable?
R and S
V and W
R, S, T and U
D T, U, V and W
What could have caused the change in the shape of the production possibility curve (PPC) shown below?
advances in technology in the clothing industry
an increase in the size of a country’s labour force
a change in consumer preferences towards clothing
more resources being devoted to producing clothing
