Production Possibility Curves Quiz by Shubhrata Shrestha | May 21, 2025 | 0 comments Production Possibility Curves Quiz 1. What does a point inside the PPC represent? A) Economic growth B) Full resource utilization C) Technological advancement D) Inefficient use of resources None 2. A straight-line PPC indicates: A) Constant opportunity cost D) Inefficient resource use C) Unemployment D) Decreasing opportunity cost None 3. Which of the following would NOT cause an outward shift in the PPC? A) Better education B) Natural disaster C) Improved technology D) Increased labor force None 4. What does an outward shift of the PPC signify? A) Inefficiency B) Economic decline C) Economic growth D) Opportunity cost None 5. The bowed-out shape of a PPC reflects: A) Constant opportunity cost B) Diminishing returns C) Increasing opportunity cost D) Fixed productivity None 6. What does a point outside the PPC indicate? A) Efficiency B) Full employment C) Current possibility D) Unattainable with current resources None 7. Which one is a key assumption of the PPC model? A) Unlimited resources B) Full employment of resources C) Shifting preferences D) Changing technology None 8. If a country produces more capital goods and fewer consumer goods today, what is the likely effect? A) Immediate welfare rises B) Opportunity cost falls C) Future production capacity increases D) PPC shifts inward None 9. The opportunity cost of producing one good is measured by: A) The amount of money invested B) The amount of the other good forgone C) The price of the product D) Labor hours spent None 10. What best describes the PPC? A) Measures unemployment B) Explains consumer behavior C) Illustrates scarcity and trade-offs D) Graphs inflation trends None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
