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FEE Production Possibilities Frontier (PPF) Flashcards | StudBud
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FEE Production Possibilities Frontier (PPF)
FEE Production Possibilities Frontier (PPF)
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Questions
16
Answers
1
In the figure, moving from point d to point a requires
Both capital accumulation and a decrease in unemployment
A decrease in unemployment
Technological change
Decreasing output of cider to boost the output of cheese
2
In order to gain 1 calzone, society must sacrifice
1 pizza
12 pizza
10 pizza
2 pizza
3
What is the opportunity cost of moving production point b to point c?
6 cider
12 cider
2 cheese
13 cheese
4
Why do some production possibilities curves bow outward?
To produce more of a good a constant amount of another must be sacrificed
To produce more of a good a increasing amount of another must be sacrificed
Production takes time.
Increasing wants need to be satisfied.
5
Suppose a country is at point d. A movement to point ________ means that the country ________.
b; must give up 12 cider to increase cheese production
c; gains more cheese and cider at the same time
a; is producing at an inefficient point
f; is not operating efficiently
6
Which of the following is a correct statement about production possibilities frontiers at a given moment in time?
An economy can produce only on the PPF.
An economy can produce at any point inside or outside a PPF.
An economy can produce at any point on or inside the PPF, but not outside.
An economy can produce at any point inside the PPF, but not on or outside.
7
Any production point outside the production possibilities frontier
is attainable only if prices rise.
is currently unattainable.
is associated with unused resources.
is attainable only if prices fall.
8
What point represents a point that is unattainable given the current level of resources?
b
a
e
C
9
Which point demonstrates efficient use of resources?
only b
e
a
b, c, & d
10
Begin at the ppf labeled
ef
.
What point(s) represents technological improvement that only impacts consumer good output?
b
gh
cd
eh
11
Which point demonstrates unemployment of workers?
C
a
b
e
12
Begin at the ppf labeled
ef
.
What point(s) represents brain drain from a community with poor public safety services?
gh
b
a
cd
13
Which factor of production would include fork lifts controlled by robotics, air conditioning systems & bar code readers?
Entrepreneurship
Land
Capital
Labor
14
Which point indicates that resources are NOT fully utilized or are inefficient?
c
b
e
a
15
Begin at the ppf labeled
ef
.
What point(s) represents economic growth due to additional labor inputs from immigration?
cd
gh
ef
a
16
The movement from point c to point a could be caused by
an improvement in efficiency
unemployment of resources
an advance in production technology
economic growth
