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Questions and Answers
Which of the following is NOT a key assumption of the Production Possibilities Curve?
Which of the following is NOT a key assumption of the Production Possibilities Curve?
- Full employment of resources
- Fixed Resources
- Flexible Technology (correct)
- Only two goods can be produced
What is the Law of Increasing Opportunity Cost?
What is the Law of Increasing Opportunity Cost?
- As you produce more of any good, the opportunity cost will decrease
- As you produce more of any good, the opportunity cost will fluctuate
- As you produce more of any good, the opportunity cost will increase (correct)
- As you produce more of any good, the opportunity cost will remain constant
Why are resources not easily adaptable to producing both goods?
Why are resources not easily adaptable to producing both goods?
- Because of scarcity
- Because of trade-offs
- Because of fixed resources (correct)
- Because of flexible technology
Which of the following is NOT a concept that a production possibilities curve demonstrates?
Which of the following is NOT a concept that a production possibilities curve demonstrates?
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What is the purpose of a production possibilities curve?
What is the purpose of a production possibilities curve?
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What is one of the key assumptions of a production possibilities curve?
What is one of the key assumptions of a production possibilities curve?
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What is the production possibilities curve used for in economics?
What is the production possibilities curve used for in economics?
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