Production efficiency is achieved:
a) when all goods and services desired by consumers can be produced in the economy.
b) when producing inside the production possibilities frontier.
c) when the ability is gained to produce goods and services that are desired beyond the PPF boundary
d) when producing one more unit of one good cannot occur without producing less of some other good.
e) None of the above.
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Which of the following changes will have no effect on the production possibility frontier in an economy that produces fertilizer and steel?
Here is a production possibilities schedule for two goods.
As we go down along a concave production possibilities frontier, the opportunity cost of producing good x
Scarcity
The concept of opportunity cost is a result of
Consider the following production possibilities frontier
Which of the following is true?
Practice Question
Economy E can produce two goods, guns and butter.
a) What is the opportunity cost of producing the 4th gun?
b) What is the opportunity cost of producing the first two units of butter?
Practice: PPF
Here is a Production Possibilities Frontier.
This Economy can produce all points listed on the PPF curve.
Point A is
Practice: Opportunity Costs
On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is:
Practice: Outward Bowed PPF
The following shows the PPF for an economy producing goods X and Y.
The PPF shows that X has an?
The PPF shows
This Economy can produce all points listed except point C, point A is
The opportunity cost of attending college is likely to be highest for a high school graduate:
Food Film
25 0
22 9
If the PPF is a straight negatively sloped line, this implies:
Practice: Opportunity Cost
Suppose Bob is considering training for the Olympics. He would have to leave his job for a year at which he currently earns $45000. He would have to pay $6000 for training expenses. He will receive a $5000 grant from the government. His annual expenses for food and rent are currently $12000. Calculate his opportunity cost of going to the Olympics.
Practice: Opportunity Cost 2
The principle of increasing opportunity cost leads to:
Which of the following would not cause the PPF to shift outward?
A firm's opportunity cost of production
Suppose Bob is considering training for the Olympics. He would have to leave his job for a year at which he currently earns $45000. He would have to pay $6000 for training expenses. He will receive a $5000 grant from the government. His annual expenses for food and rent are currently $12000.
Calculate his opportunity cost of going to the Olympics.