Practise using production possibility curves to analyse scarcity, choice, opportunity cost, efficiency, unemployment, capacity growth and reallocation between outputs.
An economist knows the current point at which an economy operates within its production possibility curve.
What can the economist conclude about this economy?
its degree of self-sufficiency
its international competitiveness
its level of output of two goods
its rate of economic growth
The diagram shows a production possibility curve for an economy that produces two goods, X and Y .
When will the opportunity cost of producing more of good X be the largest?
moving from point E to point F
moving from point E to point G
moving from point E to point H
moving from point G to point H
The diagram shows three production possibility curves (PPC) for a country, labelled 3, 2 and 1. The original PPC for the country is 2 .
This country experiences a fall in its working population and then this is followed by a long period of recession.
If an increase in GDP then takes place, what is the increase in production?
r to s
r to u
s tot
t to u