- we must make choices
- choices have opportunity costs
- the law of increasing costs
- the effect of unemployment
- the effect of productive inefficiency
- the effect of economic growth
- how present choices affect future possibilities
- the effect of international trade
- the PPC does NOT show the optimum product mix (allocative efficiency)
A. 9 power drills and 1 pair of skis
B. 7 power drills and 3 pairs of skis
C. 4 power drills and 1 pair of skis
D. 0 power drills and 4 pairs of skis
A. 0 power drills
B. 2 power drills
C. 3 power drills
D. 4 power drills
A. because all costs in economics are opportunity costs
B. because if resources are limited society must make choices
C. because resources and technology are assumed to be fixed
D. because resources are not all the same
A. the PPC to shift inwards
B. the PPC to shift outwards
C. economic growth
D. technological advances
A. A
B. B
C. C
D. D
E. E
A. lower unemployment
B. international trade
C. achieving productive efficiency
D. achieving allocative efficiency
A. A
B. B
C. C
D. D
E. E
F. we can't tell