A slide deck for an in-class activity quiz on the production possibilities curve.

2. PRODUCTION
POSSIBILITIES
QUIZ

3. PRODUCTION POSSIBILITIES QUIZ
#1
True or False?
Point A represents bicycles
the amounts of cars
and bicycles that A
will be sold.
cars

4. PRODUCTION POSSIBILITIES QUIZ
#2
True or False?
As you move from bicycles
point F to point G the
price of bicycles G
increases. F
cars

5. PRODUCTION POSSIBILITIES QUIZ
#3
True or False?
Movement along the bicycles
curve from point C to C
point A shows us the
A
opportunity cost of
producing more
bicycles.
cars

6. PRODUCTION POSSIBILITIES QUIZ
#4
True or False?
If we have high bicycles
unemployment then
the curve shifts in.
?
cars

7. PRODUCTION POSSIBILITIES QUIZ
#5
True or False?
If an improved bicycles
process for
?
manufacturing cars
is introduced, then
the entire curve will
shift out.
cars

8. PRODUCTION POSSIBILITIES QUIZ
ANSWERS
#1
True or False?
Point A represents the bicycles
amounts of cars and bicycles
that will be sold.
A
ANSWER: False. It
represents how many cars
and bicycles are produced!
cars

9. PRODUCTION POSSIBILITIES QUIZ
ANSWERS
#2
True or False?
As you move from point F to bicycles
point G the price of bicycles
increases.
G
ANSWER: False. The number F
of bicycles produced
increases.
cars

10. PRODUCTION POSSIBILITIES QUIZ
ANSWERS
#3
True or False?
Movement along the curve bicycles
from point C to point A shows
us the opportunity cost of
C
producing more bicycles.
A
ANSWER: False. It represents
the opportunity cost of
producing more cars.
cars

11. PRODUCTION POSSIBILITIES QUIZ
ANSWERS
#4
True or False?
If we have high unemployment
then the curve shifts in. bicycles
ANSWER: False.
Unemployment means that not
everyone is working so
production is inside the PPC. ?
The PPC stays put since it
represents the maximum output
if all resources are being used to
the fullest. cars

12. PRODUCTION POSSIBILITIES QUIZ
ANSWERS
#5
True or False?
If an improved process for bicycles
manufacturing cars is
introduced, then the entire
curve will shift out. ?
ANSWER: False. The curve
only moves out along the car-
axis. It is not possible to
make more bicycles than
before. cars

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