stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Production Possibility Curve Flashcards | StudBud
Explore
/
Production Possibility Curve
Production Possibility Curve
18 terms
·
StudBud Administration
·
2,141 plays
For the PPF and PPC Economics test!
Flashcards
18 cards
F
Practice quiz
P
Host live
L
Questions
18
Answers
1
When you are producing
outside/above the PPF curve,
you are producing:
Maximum overdrive
Efficiently
Inefficiently
It is impossible to produce outside/above the PPF curve
2
A cost that cannot be avoided because they have already been incurred (money already spent) is:
Opportunity Cost
Essential Cost
Unavoidable Cost
Sunk Cost
3
When you are producing
directly on the PPF,
you are producing
Inefficiently
None of the above
It is impossible to produce directly on the PPF
Efficiently
4
When you are producing
below/inside the PPF
curve, you are producing
None of the above
Efficiently
It is impossible to produce below/inside the PPF curve
Inefficiently
5
Identify:
As the production of one good increases, the other decreases at an increasing rate
The Law of Decreasing Costs
The Law of Increasing Costs
The Law of Supply & Demand
The Law of Opportunity Cost
6
What does it mean if the curve of the line is linear (straight)?
The rate of change between products are the same
This is impossible, the PPF can only be curved.
This can only be possible when looking at one product
This means that production changes in equal proportions
7
What is
Cost
in economics?
The alternative that is given up because of a decision
The action to take everything so no decision has to be made
The benefits of choosing between one of two things
The price of a good or service
8
Information and knowledge that society has about the production of goods and services is fixed
Technical Efficiency
Two Goods
Fixed Technology
Fixed Resources
9
What is an example of
underutilization?
Producing inside/under the PPF line.
Having no resources, thus not be able to produce anything
Producing on the PPF line, efficient
Producing outside/above the PPF line.
10
The Four Assumptions (Ceteris Paribus)
are when:
All other things change except for one
All other things remain the same except for one
All other things remain the same
All other things change
11
This assumption makes it easy to display production:
Two Goods
Fixed Resources
Fixed Technology
Technical Efficiency
12
Which of the following reasons would make a PPC grow (move to the right)?
All of the above
Available land or improvements to land
Technological Advances
Increase in population, immigrants, birth rates increase
13
Which of the following reasons would
NOT
be a cause of a decline (leftwards movement) in a PPC?
War or Natural Disaster
Decrease in production due to aging population
Decrease in population (birth rates decline)
Accumulation of capital
14
What is a
Production Possibilities Frontier?
A model used to analyze production decisions and scarcity
A model that illustrates supply and demand.
Study of the added benefits of producing one more thing
A line on a PP graph that shows the maximum possible output
15
What is a
Production Possibilities Curve?
A curve that illustrates supply
A model used to analyze production decisions and scarcity
A line that shows the maximum possible output on a PP graph
A curve that illustrates demand
16
What is the best way to describe
efficiency?
Maximizing the production of goods and services
A point which you are producing outside/above the PPF line
Minimizing the production of goods and services
Using less than what an economy is capable of using
17
Resources are used in a technically efficient way
Two Goods
Fixed Resources
Technical Efficiency
Fixed Technology
18
The quantities of land, labor, capital, and entrepreneurship resources do not change
Technical Efficiency
Fixed Technology
Two Goods
Fixed Resources
