10 Questions
What does the opportunity cost of moving from point a to b represent?
5 Bikes
Moving from point b to d incurs an opportunity cost of how many bikes?
6 Bikes
What is the opportunity cost of moving from point d to b?
4 Computers
If a firm moves from point f to c, what is the opportunity cost in terms of computers?
0 Computers
What can be said about point G on the production possibilities frontier?
It is unattainable with current resources
What does 'productive efficiency' mean in relation to a production possibilities frontier?
Producing at points A, B, C, D, and F
'Productively inefficient' points, like point R, are characterized by:
'Inefficient' utilization of resources
'Allocative efficiency' refers to:
'Efficient' allocation of resources among different goods
'Productive efficiency' on a PPF means:
'Efficiently' using all available resources
'Productively inefficient' points like point R indicate:
'Inefficiently using' available resources
Test your knowledge on production possibility frontier (PPF), efficiency, and underutilization in microeconomics. Questions include defining PPF, understanding efficiency, and recognizing underutilization.
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