FC6: Production Possibilities Curve (PPF)

Last updated over 6 years ago

5 questions

1

Based on the production possibilities curve above which point(s) are efficient?

More consumer goods but fewer capital goods

Fewer capital goods and fewer consumer goods

Fewer capital goods but more consumer goods

More capital goods and more consumer goods

A movement from point A to point C on PP1

A movement from point C to D

A shift fro PP1 to PP2

A shift from PP2 to PP1

Based on the production possibilities curve above which point(s) are efficient?

Point D

point A

point C

point E

point B

Based on the PPC above which point(s) are inefficient?

Point D

point A

Point C

Point E

Point B

Based on the PPC above which point(s) is/are currently unattainable given fixed resources and technology?

Point B

Point C

Point A

Point E

Point D

Based on the PPC above if society chooses to move from point A to point B, what would be the result?

More consumer goods but fewer capital goods

Fewer capital goods and fewer consumer goods

Fewer capital goods but more consumer goods

More capital goods and more consumer goods

How is economic growth illustrated on the PPC above?

A movement from point A to point C on PP1

A movement from point C to D

A shift fro PP1 to PP2

A shift from PP2 to PP1