Trivia Quiz On Production Possibility Curve! Knowledge Test

8 Questions

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Trivia Quiz On Production Possibility Curve! Knowledge Test

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Questions and Answers
  • 1. 
    A production possibilities curve shows the relationship between the production of
    • A. 

      Two types of factory goods

    • B. 

      Any two categories of goods

  • 2. 
    The line on a production possibilities curve showing the relative amounts of two types of goods produced using all its resources is called the 
    • A. 

      Production possibilities frontier

    • B. 

      Opportunity cost line

  • 3. 
    Increasing the number of laborers in an economy generally causes a(n)
    • A. 

      Increase in the production possibilities curve

    • B. 

      Decrease in the production possibilities curve

  • 4. 
    The law of increasing costs means that as prodcution shifts from one item to another, 
    • A. 

      More and more resources are necessary to increase production of the second item

    • B. 

      The land costs of increasing production rise much more steeply than do the labor costs

  • 5. 
    An economy that is NOT using all its resources to gain the maximum possible production is
    • A. 

      Efficient

    • B. 

      Underutilized

  • 6. 
    The curve usually seen in a production possibilities frontier can be explained by 
    • A. 

      Increasing an economy's efficiency

    • B. 

      The law of increasing costs

  • 7. 
    An economy that is producing the maximum amount of goods and services is considered
    • A. 

      Efficient

    • B. 

      Underutilized