Other questions in this quiz

2. What is the PED formula?

  • change in demand / change in supply
  • change in quantity demanded / change in price
  • change in demand / chang in income
  • change in income / change in demand

3. What is productive efficiency?

  • When a firm is breaking even
  • When a firm makes a profit
  • When a firm operates at minimum cost
  • When a firm operates at maximum cost

4. What does the PPB (production possiblility boundary) indicate

  • the maximum possible output that can be achieved in a set time perio
  • The amount supplied in an economy during a recession
  • demand and supply combined
  • The amount produced in an economy and any time

5. Why is the PPB not a straight line?

  • due to the economic problem
  • because resources arent equally productive or of equal quality
  • because supply varies throughout the year
  • due to the existance of alternative and substitute goods

Comments

Louisa Wray

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Question five is interesting... Isn't it due to the fact of opportunity cost - productivity of products would shift the PPB not determine the shape of it? 

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