Practice Questions
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What does a rightward shift in a production possibilities curve (PPC) typically indicate in terms of resource allocation?
A rightward shift means the economy can produce more goods. Other options are incorrect because Some might think a right shift means fewer resources; ...
How does a technological advancement affect the Production Possibilities Curve (PPC) in the context of scarcity?
When technology improves, we can make more goods with the same resources. Other options are incorrect because This answer suggests that technology mak...
Which of the following scenarios would likely cause a rightward shift in the Production Possibilities Curve, indicating economic growth?
All of these options can lead to economic growth. Other options are incorrect because Some might think that just having more resources is enough; Peop...
If an economy is operating inside its production possibilities curve due to underutilization of resources, which of the following statements best describes the relationship between scarcity and returns to scale?
When resources are not fully used, scarcity still exists. Other options are incorrect because This option suggests that not using resources removes sc...
Which of the following scenarios best illustrates a shift in the Production Possibilities Curve (PPC) due to increasing returns to scale while also demonstrating comparative advantage?
This scenario shows a country that can produce more technology without losing agricultural output. Other options are incorrect because This option sug...
What does a rightward shift in the Production Possibilities Curve (PPC) indicate about an economy?
A rightward shift means the economy can produce more goods. Other options are incorrect because Some might think a shift means less efficiency; This a...
What does a rightward shift in the Production Possibilities Curve (PPC) indicate about an economy?
A rightward shift means the economy can produce more goods and services. Other options are incorrect because Some might think a shift means costs go d...
Which of the following scenarios represents economic efficiency as illustrated by a Production Possibilities Curve (PPC)?
Producing at a point on the curve means using resources fully. Other options are incorrect because This option suggests using fewer resources than pos...
If the Production Possibilities Curve (PPC) shifts outward, what is the most likely underlying cause of this change?
When technology improves or more resources are available, production can increase. Other options are incorrect because Some might think less demand me...
Production Possibilities Curve:Technological Advancement :: Opportunity Cost:?
When technology improves, we can make more with the same resources. Other options are incorrect because Some might think that more resources mean bett...
A country has recently invested in new technology and improved its education system, allowing workers to become more skilled. How would these changes most likely affect the Production Possibilities Curve (PPC) of the country?
When a country invests in technology and education, it helps workers produce more. Other options are incorrect because Some might think that changes l...
What does an outward shift in the Production Possibilities Curve (PPC) signify for an economy?
An outward shift means the economy can produce more goods. Other options are incorrect because This option suggests that there are fewer resources; Th...
A shift of the Production Possibilities Curve (PPC) to the right indicates an increase in an economy's __________, which can result from technological advancements or better resource allocation.
When the PPC shifts to the right, it shows that the economy can produce more goods and services. Other options are incorrect because Opportunity cost ...
Arrange the following steps in the correct sequence to explain the outward shift of the Production Possibilities Curve (PPC): A. Technological advancements increase efficiency, B. The economy produces more of both goods, C. The Production Possibilities Curve shifts outward, D. Resources are utilized more effectively.
When technology improves, it helps us use resources better. Other options are incorrect because This option suggests we can produce more without first...
If a country's Production Possibilities Curve shifts outward, what is the most likely implication for its economy?
An outward shift means the country can make more of both goods. Other options are incorrect because Some might think that producing more of one good m...
A country experiences a significant technological advancement in its agricultural sector. How should this development be categorized in relation to the Production Possibilities Curve (PPC)?
When technology improves farming, the country can produce more food. Other options are incorrect because This choice suggests that resources are reduc...
Master Production Possibilities Curve Shifts
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