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Lesson 1.3 Review: Production Possibilities Curves
Lesson 1.3 Review: Production Possibilities Curves
Lesson 1.3 Review: Production Possibilities Curves
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Period: _________________________
1.
Based on this table, each time this country moves more resources away from producing
shoes towards growing watermelons,
a. the cost of growing additional watermelons decreases.
b. the cost of growing additional watermelons increases.
c. the cost of growing additional watermelons remains the same.
d. the cost of growing additional watermelons is not affected.
2. Which of the following causes a production possibilities frontier to shift to the right?
a. The economy grows.
b. The economy shrinks.
c. The economy stagnates.
d. The economy destabilizes.
.
Name:
_______________________________
Period: _________________________
4.
5. Many countries produce a single good upon which much of their economy
depends. That good might be coffee or wool or oil. How might a production
possibilities curve help economists in such a country determine how to
diversify their economy?
6. An inventor found a new way to produce more steel from each ton of her
country's iron ore. How would a production possibilities curve reflect the
application of that discovery to the country's production of steel cookware?
Why?
.
Name:
_______________________________
Period: _________________________
7. The leader of Capeland gave all workers a month-long vacation from work to
celebrate a national holiday. Would this show up on the production
possibilities curve as underutilization or as a shift of the production
possibilities frontier to the left? Explain.
.
Name:
_______________________________
Period: _________________________