![]() ![]() What type of opportunity cost does the economy experience? ESSAY QUESTIONS …Īlong the production possibilities curve entails-on both the constant-cost curve and a bowed curve indicating increasing costs. Illustrate the following in the same diagram Scarcity, Choice and Opportunity cost c. Draw the Production Possibilities Curve b. Microeconomic Essei sample question Exhibit 1 Production possibilities curve data Consumption Goods Capital Goods 10 0 9 1 7 2 4 3 0 4 a. Economists use language that appears rather ordinary, but the meanings they attach Perhaps the best study hint for mastering this chapter (and one that applies to all subsequent chapters) is to learn the jargon used by economists. PRODUCTION POSSIBILITIES AND OPPORTUNITY COSTS Chapter in a Nutshell If your answers to these questions were e, c, e, b, and c, then you are on the right track. Econ Quiz #1 Choose one of the thousands addictive production possibilities curve quizzes, play and share. Choose one of the thousands addictive production possibilities curve quizzes, play and share. Play production possibilities curve quizzes on ProProfs, the most popular quiz resource. One of these is the concept of efficiency and economic growth. The production possibilities curve (PPC) is simply a device for illustrating a couple of fundamental points about economics. Carefully consider the differences between the three types of points. The PPF curve divides production space into 3 distinct areas, points on the PPF curve (points like B), points outside the curve (points like C), and points on the inside of the curve (points like A). (E) enacting a set of laws that protects resources from overuse. (D)allocating scarce productive resources to satisfy wants. (C) developing a price mechanism that reflects the relative scarcities of products and resources. The crucial problem of economics is (A) establishing a fair tax system. the first two questions) interrelate with …Ĭircle the letter of each correct answer. PRODUCTION POSSIBILITY CURVE (PPC) shows different combinations of production of two goods which an economy can produce within given …Ī distributive question in that it is based on the distribution of wealth in a society, the types of goods produced and method of production (i.e. ![]() If there is an increasing opportunity cost of Invariably, in order for an economy to increase the quantity of one good produced, production of the other good must be sacrificed.
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