Introduction to Microeconomics (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is opportunity cost?
What is opportunity cost?
Benefit forgone from next best alternative
What does a trade-off represent?
What does a trade-off represent?
Choosing one option requires giving up another
What does the PPC show?
What does the PPC show?
Maximum output combinations of two goods
What does movement along a PPC represent?
What does movement along a PPC represent?
Reallocation of resources between goods
Why is the PPC typically concave to the origin?
Why is the PPC typically concave to the origin?
Due to law of increasing opportunity costs
What happens to opportunity cost as production of one good increases along the PPC?
What happens to opportunity cost as production of one good increases along the PPC?
It increases
What do points under the PPC indicate?
What do points under the PPC indicate?
Factors of production underutilised
What causes an outward shift of the PPC?
What causes an outward shift of the PPC?
Improved quality/quantity of factors
What does an inward shift of the PPC represent?
What does an inward shift of the PPC represent?
Unsustainable development
What is technology biased growth?
What is technology biased growth?
Technology improving for one good only
What does the slope of the PPC represent?
What does the slope of the PPC represent?
Opportunity cost
A farmer has 100 acres. All for wheat gives 10,000 bushels. What is the opportunity cost of this?
A farmer has 100 acres. All for wheat gives 10,000 bushels. What is the opportunity cost of this?
8,000 bushels of corn foregone