Trivia Quiz On Production Possibility Curve! Knowledge Test

8 Questions | Total Attempts: 1472

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Trivia Quiz On Production Possibility Curve! Knowledge Test

Welcome to the trivia quiz on production possibility curve. In our economy class we got to learn more about how to maximize output between two products using the limited resources. Take up the quiz below and get to see just how well you understood the chapter and what affects the movement of the curve upwards or downwards. All the best!


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

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