ECON: Scarcity, Choices, Opportunity Cost & the PPC

Question 1

What are the four factors of production?

Accepted Answer

Land, labor, capital, entrepreneurship

Question 2

What is the best way to describe efficiency?

Accepted Answer

Maximizing the production of goods and services

Question 3

What is capital?

Accepted Answer

All of the above

Question 4

When you are producing below/inside the PPF curve, you are producing

Accepted Answer

Inefficiently

Question 5

Select the colour RED

Accepted Answer

BLUE

Question 6

Using a PPC - an economy can produce food & shelter. If the production of shelter is increased

Accepted Answer

The production of food must be decreased

Question 7

There is no try only...

Accepted Answer

DO, DO NOT

Question 8

What is an example of underemployment?

Accepted Answer

Producing inside/under the PPF line.

Question 9

If we have numbers we can calculate Opportunity Cost as = to:

Accepted Answer

sacrifice/gain

Question 10

What does it mean if the curve of the line is linear (straight)?

Accepted Answer

The rate of change between products are the same, This means that production changes in equal proportions

Question 11

When you are producing outside/above the PPF curve, you are producing:

Accepted Answer

It is impossible to produce outside/above the PPC curve

Question 12

What is a Production Possibilities Curve graph?

Accepted Answer

A model used to analyze production decisions and scarcity

Question 13

What is an example of labour?

Accepted Answer

Farmer

Question 14

What is scarcity?

Accepted Answer

not all of the goods and services one wants are available

Question 15

This assumption tells us that resources are used in a technically efficient way

Accepted Answer

Full Employment

Question 16

This assumption states that land, labor, capital, and entrepreneurship resources do not change

Accepted Answer

Fixed Resources

Question 17

As the production of one good increases, the other decreases at an increasing rate is:

Accepted Answer

The Law of Increasing Relative Costs

Question 18

Everything that is scarce requires a choice & these choices always involve an opportunity cost.

Accepted Answer

TRUE

Question 19

Opportunity cost is the worst of the alternatives that must be given up when a choice is made.

Accepted Answer

FALSE

Question 20

A production possibilities curve shows the various combinations of output:

Accepted Answer

An economy can produce.

Question 21

What is Opportunity Cost in economics?

Accepted Answer

The alternative that is given up because of a decision

Question 22

Who is your favourite economics teacher?

Accepted Answer

Mr. Aspery, Mr. Aspery, Mr. Aspery, Mr. Aspery

Question 23

When you are producing directly on the PPF, you are producing

Accepted Answer

Efficiently

Question 24

This assumption makes it easy to display simple production trade-offs:

Accepted Answer

Two Goods

Question 25

What is land?

Accepted Answer

All natural resources

Question 26

This assumption makes it easier to say that inputs can be moved to produce a different output

Accepted Answer

Common Resources

ECON: Scarcity, Choices, Opportunity Cost & the PPC

Questions 26

ECON: Scarcity, Choices, Opportunity Cost & the PPC

Questions 26