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6. A production possibility curve (PPC) shows...
- Options 1 and 3
- The opportuity cost of changing quanty produced
- The maximum output of one product
- The maximum output of 2 products at different combinations
7. A shift outward of the PPC could be caused by...
- Discovery of more raw materials
- All of the above
- A rise in price of a substitute.
- A change in consumer tastes and preferences
8. Specialisation has the risk that...
- Finite resources such as oil or copper may run out.
- All of the above.
- Change in consumer tastes and preferences.
- De-Industrialisation when alternatives such as imports become cheaper.
9. Demand is...
- The quatity of a product that consumers are willing and able to purchase at different prices over a period of time.
- How much people buy
- The relationship between price and quantity
- The extra costs above those actually paid by the consumer
10. A point inside a production possibility curve (PPC) represents...
- An efficient allocation of recources
- Could be any of the above
- A inefficient allocation of resources
- An impossible level of production that cannot be achieved unless there is a rise in technology or amount of raw materials