Production Possibilities Curve Quiz

A production possibilities curve is a curve that shows the possibilities of production of a combination of certain goods.

A production possibilities schedule is a table of possible production of goods.

When you trace a PPC curve and figure out M.O.C from one point to another.

<p>Because the M.O.C is not constant; as production increases, the opportunity cost increases.</p> Signup and view all the answers

<p>As an economy shifts production from one good to another, it must forego increasingly large amounts of the first good for each additional unit of the second good produced.</p> Signup and view all the answers

<p>Business owners typically start with the best resources, but using more units requires using less optimal resources.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>A graph illustrating the combinations of two types of output that can be produced by a society using the available resources and technology.</p> Signup and view all the answers

<ol> <li>The types and amounts of available resources are fixed. 2. The technology used to produce the outputs is constant. 3. Available resources are fully employed. 4. Production is efficient.</li> </ol> Signup and view all the answers

<p>Being inside the curve is possible but not efficient; some resources are not being used effectively.</p> Signup and view all the answers

<p>Being on the curve is both possible and efficient.</p> Signup and view all the answers

<p>It means everything else in the economic model stays the same when a change occurs.</p> Signup and view all the answers

<p>The PPC shifts outward/up/right, and the maximum production of both goods is larger.</p> Signup and view all the answers

<p>The PPC increases only for the maximum production of the good that was affected.</p> Signup and view all the answers

<p>The slope of the PPF and the measure of the opportunity cost of moving from one point to another along the curve.</p> Signup and view all the answers

<p>An increase in the quantity of resources, productivity of those resources, and/or improvement in technology.</p> Signup and view all the answers

<p>It occurs if the economy experiences an increase in the quantity or quality of resources or an improvement in technology in the output manufacturing sector.</p> Signup and view all the answers

<p>A type of efficiency demonstrated by the production possibilities model when the economy is producing on its PPF.</p> Signup and view all the answers

<p>Achieved by producing a given level of output with the fewest resources or by producing maximum output using a given amount of resources.</p> Signup and view all the answers

<p>Efficiency in producing a good/service, as long as marginal benefit exceeds marginal cost.</p> Signup and view all the answers