Practice Questions
Click any question to see detailed solutions
What does the concept of opportunity cost represent in the context of a Production Possibility Curve (PPC)?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because This answer confuses total output with opportunity co...
If a country operates on its production possibility curve (PPC) and decides to allocate more resources to the production of consumer goods instead of capital goods, what is the opportunity cost of this decision?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because This option confuses the idea of what is lost; Th...
If a country produces more of Good A, which is known to have a high marginal cost, what is the opportunity cost associated with this decision in terms of Good B production?
When a country makes more of Good A, it uses resources that could have made Good B. Other options are incorrect because Some might think the total cos...
In a scenario where resources are scarce, how does the concept of opportunity cost affect the production possibility curve (PPC) when considering marginal benefits of two goods?
When you choose one good, you give up the chance to have the other. Other options are incorrect because Some think opportunity cost stays the same, bu...
If an economy is operating on its Production Possibility Curve (PPC), which of the following statements holds true regarding opportunity cost and economic efficiency?
When an economy is on the PPC, it uses all its resources well. Other options are incorrect because This idea suggests that more of one good can be mad...
What does the concept of opportunity cost represent in the context of a Production Possibility Curve (PPC)?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think opportunity cost is about total prod...
What does the Production Possibility Curve (PPC) illustrate regarding opportunity cost in economics?
The PPC shows how much of two goods can be made with the resources we have. Other options are incorrect because Some might think the PPC shows total p...
In the context of a Production Possibility Curve (PPC), what does the concept of opportunity cost primarily illustrate?
Opportunity cost shows what you give up to get something else. Other options are incorrect because Some might think total cost means everything spent ...
Which of the following statements correctly describe opportunity cost and its relationship with the Production Possibilities Curve (PPC)? Select all that apply.
All the statements provided misunderstand key ideas about opportunity cost and the PPC. Other options are incorrect because This option suggests that ...
When considering the production of two goods, if a country chooses to produce more of Good A, the _____ of Good B increases, reflecting the trade-off in the production possibilities curve.
When a country makes more of Good A, it has to give up some of Good B. Other options are incorrect because Marginal benefit means the extra satisfacti...
If a country decides to increase the production of consumer goods at the cost of capital goods, what does this illustrate about opportunity cost?
When a country makes more consumer goods, it uses resources that could have made capital goods. Other options are incorrect because Some people think ...
If a country decides to allocate more resources to the production of consumer goods instead of capital goods, which of the following is the most likely consequence?
When a country focuses on making more consumer goods, it spends less on capital goods. Other options are incorrect because Some might think that makin...
A country faces a trade-off between producing cars and computers. If it chooses to produce more cars, which statement best reflects the opportunity cost involved?
The opportunity cost is what you give up when you make a choice. Other options are incorrect because This answer confuses the cost of what is made wit...
Order the following steps to illustrate the impact of opportunity cost on production decisions in a PPC context: 1) Assess the current production levels of two goods. 2) Identify the next best alternative that will be forgone. 3) Shift production towards the good with higher demand. 4) Analyze the new PPC to understand trade-offs.
First, you check how much of each good you are making. Other options are incorrect because This option starts with identifying the alternative before ...
Production possibilities curve (PPC) : Opportunity cost :: Trade-off : ?
A trade-off happens when you choose one thing over another. Other options are incorrect because Scarcity means there are not enough resources for ever...
A farmer has 100 acres of land. If they decide to use 60 acres to grow corn and 40 acres to grow wheat, they discover that if they allocate 10 more acres to corn, they will have to reduce wheat production significantly. What does this scenario illustrate regarding opportunity cost and the production possibilities curve (PPC)?
When the farmer uses more land for corn, they have to give up some wheat. Other options are incorrect because This answer suggests that wheat won't ch...
A farmer has to decide whether to allocate more land to growing corn or wheat. If he chooses to grow more corn, he must reduce the wheat production. Which of the following concepts best describes this situation?
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Comparative advantage is about who can produce someth...
Master Opportunity Cost and PPC
Ready to take your understanding to the next level? Access personalized practice sessions, progress tracking, and advanced learning tools.