1.2.- PPC (Module 3)

If Atlantis is efficient in production, what is the opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds?

200 pounds of fish

This production possibilities curve shows the tradeoff between consumer goods and capital goods. Since capital goods are a resources, an increase in production of capital goods today will increase the economy's production possibilities in the future. There all other things equal (ceteris paribus), producing at which point today will result in the largest outward shift of the PPC in the future?

A

Which of the following combinations of output is efficient?

A Pounds of Potatoes 1,000 Pounds of fish 0

Which of the point(s) on the graph represent productive efficiency?

A, B, C, D

An increase in unemployment could be represented by a movement from point

B to point E.

Atlantis can produce which of the following combinations of output?

C 400 pounds of potatoes 600 pounds of fish

If Atlantis produces more potatoes, what is true about the opportunity cost of producing potatoes?

It continually increases

Which of the following might allow this economy to move from point B to point F? (Mark all that apply)

building new factories more workers technological advances discovery of new resources

For this economy, an increase in the quantity of capital goods produced without a corresponding decrease in the quantity of consumers goods produced:

is represented by a movement from point E to point B