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Production Possibilities and More

Total questions: 25

Worksheet time: 16mins

Name
Class
Date
1.
What is the fundamental problem of every society?
a)
labor costs
b)
scarcity
c)
economic interdependence
d)
market fluctuation
2.

The table shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?

a)

28 pizzas and 5 pairs of shoes

b)

3 pairs of shoes and 23 pizzas

c)

2 pairs of shoes and 20 pizzas

d)

4 pairs of shoes and 15 pizzas

3.
Based on the table, if the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.   
a)
26
b)
23
c)
3
d)
2
4.
What is opportunity cost?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)

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

d)
land, labor, capital, entrepreneurs
5.

What phrase does an economist use to describe Land, Labor, Capital, and Entrepreneurship 

a)

Portfolio Diversification

b)

Goals of Society

c)

Maximum Resources

d)
Factors of Production 
6.

The opportunity cost of increasing production from 7000 trucks to 9000 trucks is

a)
Scarcity
b)

3 boats

c)

2000 trucks

d)

3000 boats

7.

The opportunity cost of increasing production from 4000 boats to 7000 boats is

a)

3000 trucks

b)

3000 boats

c)
2 trucks
d)

2000 trucks

8.
Efficiency is producing the maximum possible output from available resources
a)
True
b)
False
9.

What do any points inside the Production Possibilities Curve indicate?

a)

The combination of goods that are efficient

b)
The combination of goods that employ resources fully
c)
The combination of goods that do not employ resources fully
d)

The combination of goods and spending that will overheat the economy

10.

An increase in the labor force would cause the Production Possibilities Curve to 

a)
Shift inward
b)
Shift outward
c)
Do nothing
d)
Turn into a straight line
11.
What does point Y represent on the PPC?
a)

Maximum Efficiency

b)

Unattainable or Impossible Production Point given current resources

c)

Inefficiency or Wasting of Materials

d)

Better Well Being for all of Society

12.
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
13.
Which point represents "resources are not being used efficiently, or resources are being wasted or idle"?
a)
Point A
b)
Point Y
c)
Point X
d)
All of the above
14.
The diagram shows the production possibilities curve for Country Y. Which of the following statements is true?
a)
If Country Y is producing at point C, it is using all its resources efficiently
b)
The opportunity cost of producing more machines is constant
c)
Country Y cannot produce at point E
d)
The most efficient point of production is point D
15.

If a natural disaster strikes, the production possibilities curve will most likely shift

a)
No shift
b)
To the left
c)
To the right
d)
Outward on one axis only
16.
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 or improved technology

d)
the population is growing increasingly old
17.

What does a point inside the production possibilities curve indicate?

a)

Unattainable combination

b)

Economic growth

c)

Underutilization of resources

d)

Efficiency

18.

What does a bowed out production possibilities curve indicate?

a)

No opportunity cost

b)

Constant opportunity cost

c)

Increasing opportunity cost

d)

Decreasing opportunity cost

19.

What does a straight line production possibilities curve indicate?

a)

Constant opportunity cost

b)

Increasing opportunity cost

c)

Decreasing opportunity cost

d)

No opportunity cost

20.

The study of the economy as a whole is known as what?

a)

macroeconomics

b)

microeconomics

c)

underutilization

d)

scarcity

21.

What is an example of an Opportunity Cost?

a)

Adopting a new pet 

b)

Going to a party instead of studying for an exam

c)

Getting a new job after school

d)

Using all your resources to accomplish a goal

22.

Why is point D inefficient in this scenario?

a)

Point D is on the Production Possibilities Curve

b)

Point D is not illustrated on the graph

c)

Resources at Point D are not being fully used in the goods and services production

d)

Point D is beyond the ability to produce goods and services at the time

23.

What are Trade offs?

a)

Points where all resources available are employed in the production of goods and services. ​

b)

Trading your problems for money

c)

The idea you can have everything you want

d)

The idea that if you choose one thing, you are going to lose another.​

24.

Would meeting point E be possible in this scenario?

a)

Yes, the resources can grow over time

b)

No, because the point lies outside what the resources can produce at the time.

c)

Yes, point E represents an optimal state for the producer

d)

Maybe, the possibilities are infinite in this scenario

25.

  What does PPC stand for?

a)

Production Per Citizen

b)

Power Plant Corporation

c)

Production Possibilities Curve 

d)

Proficient Possibilities Curve