Production Possibility Curve Quiz

production possibilities curve

A graphic representation of tradeoffs/opportunity costs

inefficient

Inside the curve doesn't use resources to the best of their ability.

What can cause a production possibilities curve to move to the right?

It can shift right due to better resources or newer technology to make products.

efficient

On the curve uses resources to the maximum (Point A in picture)

Scarcity

The basic economic problem. Too many wants and not enough resources.

Why does an increase in the production of resources lead to an increase in production of consumer goods in an economy?

This is because more and better resources allow you to produce more consumer goods in less amounts of time.

explain why a country cannot produce a combination of resources that is outside of its production possibilities curve.

This occurs because they don't have enough resources or potential to produce more than the efficient amount.

Opportunity costs

What you give up to get something else in return. Cost given up

Trade-off

When you select one good/service for another

unattainable

impossible to achieve outside the curve, not enough resources.

Economics

the branch of knowledge concerned with the production, consumption, and transfer of wealth.