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What does the straight line represent in the PPC?
constant opportunity costs
What does scarcity mean?
not enough resources to make something.
What is an unattainable point in the PPC?
Point Green
If the PPC has an bowed out shape, it means that:
There are increasing opportunity costs of production.
PPC means __________________, it is a graphical model that represents _____________ of two goods that can be produced
production possibility curve. all of the different combinations
The PPC shows the maximum level of ______ that can be reached with a given amount of productive ______ and technology.
output. resources
When a PPC is ……………… it means that resources are not equally productive for producing both goods.
curved
How would a PPC express an increase in technology that only affects good X?
shift to the right on good X while good Y remains the same
Because scarcity people are forced to make .............. about how they use their resources.
choices
What could cause the curve to shift to AB?
Depletion of resources
If a student has 10 hours to study for 2 subjects where he/she will be graded with a alphabetic system (A-B-C-D), what would be one inefficient use of the resources and which would be an unattainable combination?
Inefficient use of resources, studying 2 hours for both subjects and getting a D in both of them. Unattainable combination, an A in both subjects.
The opportunity cost of producing an extra 15 capital goods is...
30 consumer goods
A production possibility curve (PPC) shows the _________ possible output combinations of two _____ or ______ an economy can achieve when all _____ are fully and _____ employed.
A production possibility curve (PPC) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully
If the PPC is a straight line, then the ________ ____ of switching resources between ______ and _____ goods is _______.
If the PPC is a straight line, then the marginal opportunity cost of switching resources between consumer and capital goods is constant.
The PPC which indicates opportunity costs are the same no matter how far you move along the curve is:
Linear PPC
What is the definition of opportunity cost?
Is the highest-valued foregone alternative when any choice is made.
