Skip to main content
뒤로

Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency quiz #2

컨트롤 버튼이 '내비게이션' 모드로 변경되었습니다.
1/22
  • Refer to the graph. What is the opportunity cost of moving from point B to point C?
    The decrease in production of one good required to increase production of the other.
  • Refer to the graph. What is the opportunity cost of moving from point B to point C?
    The amount of the first good that must be sacrificed to produce more of the second good.
  • Demonstrating opportunity cost is done through production possibilities curves. How?
    By showing the trade-offs between two goods when resources are limited.
  • The production possibilities frontier illustrates
    The maximum combinations of two goods that can be produced efficiently with available resources.
  • Producers can create their maximum combination of goods, as long as they
    Operate on the production possibilities frontier.
  • The production possibilities frontier provides an illustration of the principle that
    Scarcity forces choices and trade-offs in production.
  • According to central place theory, the threshold is defined as the
    Minimum market size needed to support a good or service.
  • Production possibilities frontiers are usually bowed outward. This is because
    Resources are not perfectly adaptable, leading to increasing opportunity costs.
  • Dividing the steps of production between workers is ________.
    Division of labor.
  • What are the 3 stages of production?
    Increasing returns, diminishing returns, and negative returns.
  • At which points is production unsustainable according to the production possibilities curve?
    At any point outside the production possibilities curve.
  • What is the purpose of the production possibilities curve?
    To show the trade-offs and maximum possible output combinations of two goods given limited resources.
  • According to this production possibilities frontier, why does point P demonstrate productive efficiency?
    Because it lies on the production possibilities curve, using all resources efficiently.
  • A production possibilities curve (PPC) illustrates the attainable combination of what?
    Two goods that can be produced with available resources and technology.
  • The following table shows some data for an economy that produces only two goods: milk and honey. What does this illustrate?
    The trade-offs and opportunity costs between producing milk and honey.
  • Combinations outside of the production possibilities frontier are:
    Unattainable with current resources and technology.
  • Refer to figure 2-2. At point A in the production possibilities graph shown above, the economy:
    Is operating efficiently, using all resources.
  • The production possibilities frontier, or curve, is a graphical representation of the
    Maximum output combinations of two goods that can be produced efficiently.
  • Production is efficient if the economy is producing at a point
    On the production possibilities frontier.
  • Any point inside a production possibilities curve is
    Inefficient, indicating underutilization of resources.
  • For an entire economy, the production possibilities frontier is going to be:
    Bowed outward, reflecting increasing opportunity costs.
  • Consider a simple economy that produces two goods. What does the production possibilities frontier show?
    The maximum combinations of the two goods that can be produced with available resources.