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Production Possibilities Practice Quiz

12 Questions  I  By Lmckinney
Production Possibilities Practice Quiz
This quiz will help you to prepare for your quiz on Wednesday.

  
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Question Excerpt

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1.  Opportunity cost represents the worst of the various alternatives that must be given up when a choice is made in the context of scarcity.
A.
B.
2.  Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (i) study economics, (ii) watch two half-hour TV sitcoms, (iii) play pool, and (iv) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information?
A.
B.
C.
D.
3.  Which of the following best describes the three fundamental economic questions?
A.
B.
C.
D.
4.  TRUE OR FALSE: Everything that is scarce requires a choice, and these choices always involve an opportunity cost.
A.
B.
5.  TRUE OR FALSE: Inward shifts in the production-possibilities curve represents economic growth.
A.
B.
6.  A production possibilities curve is drawn based on which of the following set of assumptions?
A.
B.
C.
D.
E.
7.  A production possibilities curve shows the various combinations of output:
A.
B.
C.
D.
8.  Which of the following reasons might explain why an economy would be operating inside its production possibilities curve (PPC)?
A.
B.
C.
D.
9.  Combinations of goods outside the production-possibilities curve (PPC) have which of the following characteristics?
A.
B.
C.
D.
10.  If an economy can produce various combinations of food and shelter along a production possibilities curve (PPC), then if we increase the production of shelter along the PPC, which of thefollowing is true?
A.
B.
C.
D.
11.  Which point represents underutilization?
A.
B.
C.
D.
12.  Which of the following points is not attainable under current situation?
A.
B.
C.
D.
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