micro drills10 questions
Production Possibilities Curve — Practice Set 1
The production possibilities curve maps an economy's trade-offs. These questions test whether you can read points on and around the curve, explain why it bows outward, and predict what shifts it.
Q1.
A point inside the production possibilities curve represents:
Multiple choice · Foundations
Q2.
The PPC typically bows outward from the origin because:
Multiple choice · Intermediate
Q3.
An improvement in technology for producing computers will:
Multiple choice · Intermediate
Q4.
If an economy is producing on its PPC and wants more of good X, it must:
Multiple choice · Foundations
Q5.
A war that destroys factories would most likely:
Multiple choice · Foundations
Q6.
The opportunity cost of moving from combination A (10 guns, 0 butter) to B (8 guns, 20 butter) is:
Multiple choice · Intermediate
Q7.
Which of the following would NOT shift a country's PPC outward?
Multiple choice · Intermediate
Q8.
A straight-line PPC implies:
Multiple choice · Intermediate
Q9.
Economic growth is best illustrated on a PPC diagram by:
Multiple choice · Foundations
Q10.
Two countries with identical PPCs trade with each other. After specialization, total world output:
Multiple choice · Advanced