Multiple Choice
Production possibilities frontiers are usually bowed outward. This is because:
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2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Dividing the steps of production between workers is known as:
A
productive inefficiency
B
specialization
C
opportunity cost
D
absolute advantage
Verified step by step guidance1
Understand the concept being asked: The problem is about the division of production tasks among workers.
Recall the definition of 'specialization': It refers to focusing on a narrow range of tasks or production steps to increase efficiency.
Compare the other options: 'Productive inefficiency' means not using resources optimally; 'opportunity cost' is the value of the next best alternative foregone; 'absolute advantage' refers to the ability to produce more output with the same resources.
Recognize that dividing production steps among workers to improve efficiency aligns with the concept of 'specialization'.
Conclude that the term describing dividing production steps between workers is 'specialization'.
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Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency practice set
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