We've found 20 Production Possibilities Frontier tests

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What will cause the Production Possibilities Frontier to shift outward?
If technological advances occur
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Which of the following best states the purpose of using a production possibilities frontier?
Setting up efficient production
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The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the
Amount of the other good that must be given up
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production possibilities frontiers curve when they are charted on a graph because they show
the increasing costs resulting in increasingly less output
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When an economy is operating inside its production possibilities frontier, we know that
there are unused resources or inefficiencies in the economy.
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Which of the following is NOT a characteristic of a production possibilities frontier?
It indicates the ideal production levels for goods and services
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Which of the following is likely to affect the position and shape of society’s production possibilities frontier?
volume of physical resources level of labor skills level of technology
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(Refer to Figure 3 on Test 1) Which of the following events would explain the shift of the production possibilities frontier from A to B?
The economy experienced a technological advance in the production of books.
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Which of the following statements best explains how using a production possibilities frontier (PPF) helps set up efficient production?
A PPF shows the maximum amount of goods that can be produced with a given set of inputs
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Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line. What can you determine about the production of the two goods?
Production of the two goods is subject to constant opportunity cost anywhere along the PPF
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