Production Possibilities Curve Worksheet
Explore the concepts of scarcity, opportunity cost, and efficiency using the Production Possibilities Curve (PPC) at a Grade 10 level.
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Production Possibilities Curve
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Read each question carefully and answer to the best of your ability. Use the provided Production Possibilities Curve (PPC) diagram to answer questions as needed.
The diagram above illustrates a Production Possibilities Curve for a hypothetical economy producing two goods: Good X and Good Y.
Points A, B, C, D, and E represent different production possibilities.
1. Which point on the PPC represents an inefficient allocation of resources?
Point A
Point B
Point C
Point D
2. What does a movement from Point A to Point B on the PPC represent?
Economic growth
An increase in unemployment
A trade-off, producing more Good X and less Good Y
An improvement in technology
3. The Production Possibilities Curve illustrates the concept of , which states that resources are limited.
4. The cost of producing one more unit of a good, in terms of the other good given up, is known as the cost.
5. Explain why Point E on the PPC is currently unattainable for this economy.
6. Describe one scenario that could cause the entire PPC to shift outward (to the right).
7. A point inside the PPC indicates that the economy is utilizing all of its resources efficiently.
True
False
8. The bowed-out shape of the PPC implies increasing opportunity costs.
True
False