The Production Possibility Frontier (HSC SSCE Economics): Quizzes
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Practise the questions
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Practise the questions
10 questions from this quiz
What does a production possibility frontier (PPF) represent?
What does a production possibility frontier (PPF) represent?
All possible production combos of 2 goods
Which is NOT a core assumption of the PPF model?
Which is NOT a core assumption of the PPF model?
Prices of goods remain constant
What does a point ON the production possibility frontier indicate?
What does a point ON the production possibility frontier indicate?
Maximum productive capacity achieved
What do points INSIDE the PPF represent?
What do points INSIDE the PPF represent?
Unemployed or underemployed resources
Moving from oil, leather to oil, leather: opportunity cost per leather unit?
Moving from oil, leather to oil, leather: opportunity cost per leather unit?
units of oil
Which factor would shift the PPF outward?
Which factor would shift the PPF outward?
Discovery of new natural resources
How do technology improvements affect the PPF?
How do technology improvements affect the PPF?
Shift the PPF outward
What does a linear (straight-line) PPF indicate?
What does a linear (straight-line) PPF indicate?
Constant opportunity cost
Why are most real-world PPFs concave (bowed outward)?
Why are most real-world PPFs concave (bowed outward)?
Resources not perfectly interchangeable
Why does opportunity cost increase along a concave PPF?
Why does opportunity cost increase along a concave PPF?
Must transfer less suitable resources