Econ-2.2 Formative Assessment Option 1

Select all of the following that are true of the PPC Model.

Using the PPC Model and Table given, which of the following is a production point that shows EFFICIENT production of Power Drills and Skis.

Using the PPC Model and Table given, which of the following is a production point that shows INEFFICIENT production of Power Drills and Skis.

Using the PPC Model and Table given, which of the following is a production point that shows IMPOSSIBLE production of Power Drills and Skis.

Assume this society is currently at Production Point B, what would be the opportunity cost to this society of producing the 2nd pair of Skis (moving to Point C)?

 What is the opportunity cost of moving from Production Point E to Production Point C?

Which of the following would most likely cause the production possibilities frontier for cars and corn to partially shift inward?

 The PPC models given in each scenario below represent the production possibilities of Wheat & Weapons of Mass Destruction (WMDs) in the country of Alpha.  For each scenario given, identify which shift illustrated shows the change described.

Scenario: Everything else remaining constant, dynamite (used in the production of WMDs only) becomes far more abundant.

 The PPC models given in each scenario below represent the production possibilities of Wheat & Weapons of Mass Destruction (WMDs) in the country of Alpha.  For each scenario given, identify which shift illustrated shows the change described.

Scenario: Everything else remaining constant, a new wheat-growing technology is introduced in Alpha.

 The PPC models given in each scenario below represent the production possibilities of Wheat & Weapons of Mass Destruction (WMDs) in the country of Alpha.  For each scenario given, identify which shift illustrated shows the change described.

Scenario: Everything else remaining constant, the working-age population in Alpha drops significantly.