1) Economic growth is illustrated by a shift in the PPC: a) Inward b) Outward c) Downward d) Upward 2) Points inside the Production Possibilities Curve (PPC) represent: a) Efficient use of resources b) Unattainable production levels c) Inefficient use of resources d) Maximum possible production 3) The combination of factors of production used to produce goods/services is referred to as: a) Economic growth b) Economic efficiency c) Production techniques d) Resource allocation 4) If a country decides to increase police pay instead of pensions, what is the opportunity cost? a) The increased police pay b) The pensions c) The total budget d) The decrease in crime 5) Technological improvement in production will cause the PPC to: a) Shift to the right b) Shift to the left c) Remain unchanged d) Shift downward 6) A point outside the PPC represents: a) Attainable production levels b) Efficient use of resources c) Unattainable production levels with current resources d) Underutilized resources

Topic 1 (PPC)

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