Production Possibility Frontier (PPF) and Opportunity Cost Quiz Test your knowledge on Production Possibility Frontier (PPF) & Opportunity Cost with 9 questions covering definitions, implications, shifts, and technological impacts.
#1
The economy is not utilizing all of its resources efficiently.
The economy is producing at its maximum potential.
The economy is experiencing high levels of inflation.
The economy is experiencing a recession.
#2
The cost of producing an additional unit of a good or service.
The benefit foregone of the next best alternative when a choice is made.
The total cost of all resources used in production.
The cost of inputs used in production.
#3
Efficient use of resources.
Underutilization of resources.
An unattainable production level.
Maximum production capacity.
#4
A curve showing the maximum combination of goods and services that can be produced with given resources and technology.
A line indicating the cost of producing one more unit of a good or service.
A measure of the total output produced in an economy.
A graph representing the relationship between supply and demand.
#5
The opportunity cost of producing one good in terms of the other.
The total output of the economy.
The price of goods and services.
The rate of inflation.
#6
When there is a change in the price level of goods and services.
When there is a change in consumer preferences.
When there is an increase or decrease in available resources or a change in technology.
When there is a change in government policies.
#7
There is no opportunity cost.
The economy is not utilizing all of its resources efficiently.
The economy is experiencing high levels of inflation.
The economy is producing at its maximum potential.
#8
Scarcity is a concept represented by the PPF.
The PPF is a result of resources not being scarce.
Scarcity has no relation to the PPF.
The PPF shows the abundance of resources.
#9
Points on the PPF represent inefficient resource allocation.
Points on the PPF represent efficient resource allocation.
Points on the PPF signify unattainable production levels.
Points on the PPF have no relation to economic efficiency.
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