Quiz-PPC This quiz is all about production possibility curves. You can read the tutorial here. Man-made and natural disasters can shift or rotate the PPC ____________. 180 degrees to the right outwards inwards The downward slope of the PPC represents the _______________. costs opportunity cost negative externalities positive growth Why might a curved PPC be more realistic than a PPC that is a straight line? Because, not all resources are equally suitable for both the products Because a country needs to produce both the products to be self-sufficient Due to economies of scale Due to dis-economies of scale What could be the reason for the movement shown in this diagram? Technological improvement only in the cheese production industry Increase in the opportunity cost of producing steel bars increase in marginal returns of cheese industry increase in costs of steel industry What is illustrated by a move from point D to any point on the PPC? choice Constant marginal returns Long-run economic growth Short-run economic growth What is the opportunity cost of increasing the production of product B from 40 to 60 units? 10 20 40 100 Which point on this PPF is unattainable in the short-run? B A F C What is the opportunity cost of moving from point G to Point C? 0 12 tonnes of oranges 20 tonnes of sugar canes 22 tonnes of oranges Different points of PPF denote alternative combination of ________ commodities that the country can choose to produce. infinite number five three two In general, along a production possibilities frontier which is a straight line, the marginal opportunity cost is _________________. always increasing constant variable negative Loading … Question 1 of 10