Economics

Production Possibility Frontier – 5 Easy MCQs

Here are the 5 MCQs of Production Possibility Frontier. You can practice these MCQs frequently to prepare for your exams. Stay Connected for more.

Production Possibility Frontier Quiz

Production Possibility Frontier Quiz

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Production Possibility Frontier

In economics the term “opportunity cost” refer to

The production-possibility frontier depicts

A point inside the production-possibility curve indicates

The production-possibility curve shifts outward when

Increasing costs indicate that

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List of MCQs included in Quiz

  • In economics the term “opportunity cost” refer to…
    • The monetary cost of a good or service
    • The money cost of hiring an economic resource
    • The value of a good or service forgone
    • The money cost of providing a good or service
  • The production-possibility frontier depicts…
    • The maximum amount of alternative combinations of two goods that an economy can produce at a point in time
    • The limited amount of resources that an economy has at a point in time
    • The alternative combination of capital and labour inputs used in producing goods and services over time
    • The economy’s employment level at a point in time
  • A point inside the production-possibility curve indicates…
    • Inefficiency
    • Unemployed resource
    • That existing resources can produce a higher level of output
    • All of the above
  • The production-possibility curve shifts outward when…
    • There is an increase in the opportunity cost of a good
    • Increased drug use decreases the skills of the labour force
    • There is a technological advance
    • Unemployed resources are called back to work
  • Increasing costs indicate that…
    • All resources are equally efficient
    • All resources are equally inefficient
    • The output of a good can be increased only by giving up larger and larger quantities of alternative goods
    • The output of a good can be increased only by using more economic resources

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