Opportunity cost and the PPC khan academy

A production possibilities curve What statement explains why the PPC for ice cream and frozen yogurt is a straight line instead of a curve? Choose 1 answer:Choose 1 answer:(Choice A)AThe shape of the PPC signifies that the resources needed to produce the two goods are interchangeable.(Choice B)BThe shape of the PPC signifies that the resources needed to produce the two goods are very different.(Choice C)CThe shape of the PPC signifies increasing opportunity cost(Choice D)DThe shape of the PPC signifies an inefficient use of resources(Choice E)EThe shape of the PPC signifies efficient use of resources

A

Which of the following statements best captures the tradeoff between capital goods and consumption goods in economic growth? A. A society must balance the need for current consumption with the ability to consume more in the future. B. A society can consume as much as it can now without any impact on future consumption. C. Any increase in output will lead to economic growth because it allows a society to produce more goods and services today. D. Society's best strategy for promoting wellbeing is to allocate as many resources toward capital goods as possible today. E. There is no tradeoff between capital and consumer goods because both lead to an increase in economic growth

A. A society must balance the need for current consumption with the ability to consume more in the future.

A production possibilities curve The PPC shown is bowed out from the origin. What does the shape of this PPC indicate about how opportunity cost changes as more of one good is produced? Choose 1 answer:Choose 1 answer:(Choice A)AZero opportunity cost(Choice B)BIncreasing opportunity cost(Choice C)CConstant opportunity cost(Choice D)DDecreasing opportunity cost(Choice E)EThe PPC does not provide information about opportunity costs

B

Opportunity cost is best described by which of the following statements? A. The monetary cost of any economic transaction B. The value of the next best option given up when making a decision C. The tradeoffs faced when choosing how to use a scarce resource D. The cost a buyer sees for something they want E. The price to a consumer of a good or service

B. The value of the next best option given up when making a decision

Which of the following concepts can be modeled using a PPC? A. Prices that the goods will sell for will be determined in a market B. When all resources are being used, making more of one good means making less of the other good. C. Societies have preferences about what should be produced D. Governments, rather than markets, are more efficient allocators of resources E. A society can produce more of any good just by reallocating its resources more efficiently

B. When all resources are being used, making more of one good means making less of the other good.

Xam's production possibilities Which of the following movements would represent economic growth? Choose 1 answer:Choose 1 answer:(Choice A)AFrom UUU to ZZZ(Choice B)BFrom UUU to YYY(Choice C)CFrom UUU to WWW(Choice D)DFrom ZZZ to VVV(Choice E)EXXX to ZZ

D

The nation of Eoth can produce two goods: Good L and good M. The production possibilities curve for Eoth is shown here. Production possibilities for Eoth What does the shape of the PPC say about the production of these two goods? A. The opportunity cost of Good M decreases in terms of the amount of L given up as output of M increases B. Goods L and M require similar resources to produce C. There is zero opportunity cost in terms of Good L given up as output of Good M increases D. Goods L and M require very different resources to produce E. Goods L and M require identical resources to produce

D. Goods L and M require very different resources to produce

All of the following are part of the opportunity costs of going to college EXCEPT Choose 1 answer:Choose 1 answer:(Choice A)AThe money spent on tuition(Choice B)BInterest payments on student loans(Choice C)CMoney spent on textbooks(Choice D)DForegone wages given up to attend college(Choice E)EMoney spent on clothes

E

How does the opportunity cost of Good R change as output of S increases? Choose 1 answer:Choose 1 answer:(Choice A)AIt becomes negative(Choice B)BIt decreases(Choice C)CIt increases(Choice D)DIt is constant(Choice E)EIt is zero Choose 1 answer:Choose 1 answer:(Choice A)AIt becomes negative(Choice B)BIt decreases(Choice C)CIt increases(Choice D)DIt is constant(Choice E)EIt is zero

b

Which of the following is an accurate representation of economic growth? Choose 1 answer:Choose 1 answer:(Choice A)AAn increase in the amount of money circulating in the economy(Choice B)BAn increase in both the potential and actual level of output of goods and services over time(Choice C)CAn increase in capital available without any increase in production(Choice D)DAn increase in human resources that aren't used(Choice E)EAny increase in output of goods or services when an economy starts at a point inside its PPC

b

Xam's production possibilities Which of the following statements about the economic growth in this PPC are true? Choose 1 answer:Choose 1 answer:(Choice A)AXam now has more resources or technology to produce more fruit smoothies, but not fast cars(Choice B)BXam now has more resources or technology available to produce more fast cars, but not fruit smoothies(Choice C)CXam now has more resources or technology available that can produce either fast cars or fruit smoothies(Choice D)DXam's resources or technology have not changed(Choice E)EXam has fewer resources or technology to produce fruit smoothies and fast cars

b

A production possibilities curve Which of the following best explains why this PPC is bowed outward from the origin? Choose 1 answer: (Choice A) A The resources used to produce scooters and ice cream are equally suited to producing scooters and ice cream. (Choice B) B The production of scooters and ice cream is inefficient. (Choice C) C The resources used to produce scooters and ice cream are not interchangeable. (Choice D) D The opportunity cost of increasing production of scooters or ice cream is constant at any level of production. (Choice E) E Production of scooters and ice cream is efficient.

c

A PPC with points illustrating different combinations of production Based on Alex's PPC, which of the following statements best describes what we can say about how he should split his time? Choose 1 answer:Choose 1 answer:(Choice A)AHe should produce the combination at point EEE because he splits his time between the two activities(Choice B)BHe should produce the combination at point CCC because it represents the most laundry folded and meals cooked(Choice C)CHe should produce at point AAA because food is a need but laundry is not(Choice D)DHe should produce at point BBB because he has time left over to do other chores(Choice E)EWe cannot tell how he should split his time

e