Question 1
What is meant by economic growth?
A.
An increase in a country's productive capacity. B.
Shows maximum combinations of output with all resources used. C.
Sacrificing one outcome to pursue another. D.
Machinery used to produce consumer goods.
Question 2
What is meant by ppf?
A.
Shows maximum combinations of output with all resources used. B.
Not used to maximum capacity. C.
Shows economic growth — more output possible. D.
The next best alternative forgone.
Question 3
What is meant by trade-off?
A.
Sacrificing one outcome to pursue another. B.
Idle and not used at all. C.
Not used to maximum capacity. D.
Finished goods such as phones, cars and food.
Question 4
What is meant by capital goods?
A.
Shows economic growth — more output possible. B.
Shows maximum combinations of output with all resources used. C.
Machinery used to produce consumer goods. D.
Sacrificing one outcome to pursue another.
Question 5
An outward PPF shift shows:
A.
Market failure B.
Economic growth C.
Recession D.
Inflation
Question 6
What is meant by outward shift?
A.
Idle and not used at all. B.
Not used to maximum capacity. C.
Sacrificing one outcome to pursue another. D.
Shows economic growth — more output possible.
Question 7
A point inside the PPF indicates:
A.
Maximum output B.
Productive inefficiency C.
Equilibrium price D.
Economic growth
Question 8
What is meant by productive efficiency?
A.
Finished goods such as phones, cars and food. B.
An increase in a country's productive capacity. C.
Resources fully employed; cannot produce more of one good without less of another (Pareto efficiency). D.
Not used to maximum capacity.
Question 9
Define a production possibility frontier (PPF).
A.
The maximum combinations of two goods an economy can produce when all resources are fully employed. B.
The profit-maximising output level for one firm C.
A curve showing inflation and unemployment D.
Any point where demand equals supply
Question 10
What is meant by inward shift?
A.
Idle and not used at all. B.
Shows falling productive capacity, e.g. war or disaster. C.
Finished goods such as phones, cars and food. D.
Sacrificing one outcome to pursue another.
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