Lesson 1.1.4
1.1.4 Production possibility frontiers Quiz: Pearson Edexcel Economics, Unit 1
20 questions
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Lesson 1.1.4, Production possibility frontiers: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 1: Theme 1: Introduction to markets and market failure, written with Revision Ninja.
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The 20 questions
-
What does a production possibility frontier depict for an economy?
- Minimum consumption levels
- Average tax rates
- Actual market demand
- Maximum productive potential
-
What does a point lying inside a production possibility frontier represent?
- Inefficient resource use
- Unobtainable output level
- Productive efficiency
- Economic growth
-
What does a point lying beyond a production possibility frontier represent?
- Economic decline
- Allocative efficiency
- Productive inefficiency
- Unobtainable output
-
What causes a movement along a production possibility frontier?
- Reallocating resources
- Depletion of resources
- Technological progress
- Net inward migration
-
Which change causes an outward shift of a production possibility frontier?
- Technological progress
- Declining population
- Unemployment growth
- Resource reallocation
-
What are goods used to make other goods and services called?
- Consumer goods
- Merit goods
- Capital goods
- Free goods
-
Which item is an example of a capital good?
- Factory machinery
- A smartphone
- A television
- A coat
-
Releasing resources to make 50 cars reduces wheat output by 100 tonnes. What is the opportunity cost per car?
- 4 tonnes of wheat
- 2 tonnes of wheat
- 50 tonnes of wheat
- 0.5 tonnes of wheat
-
Where are productively efficient combinations of output located on a PPF diagram?
- On the frontier
- At the origin
- Inside the frontier
- Outside the frontier
-
Where on a PPF diagram is an economy operating during a recession?
- On the frontier
- Outside the frontier
- Above the frontier
- Inside the frontier
-
How does productivity-boosting technology affect an economy's PPF?
- Inward shift
- No change
- Movement along
- Outward shift
-
Switching production from capital goods to consumer goods using existing resources causes what?
- Inward PPF shift
- Movement along PPF
- PPF pivot
- Outward PPF shift
-
What choice on a PPF boosts long-term economic growth?
- Reducing investment
- Maximising current consumption
- Leaving resources idle
- Producing capital goods
-
A linear PPF meets axes at 60 X and 30 Y. What is the opportunity cost of one Y?
- 60 units of X
- 30 units of X
- 2 units of X
- 0.5 units of X
-
What is the effect of net outward migration on a country's PPF?
- Outward shift
- No change
- Inward shift
- Movement along
-
What is the opportunity cost of investing in capital goods today?
- Better technology
- Consumer goods today
- Future economic growth
- Higher employment
-
What happens to opportunity cost as output of one good increases along a concave PPF?
- It remains constant
- It decreases
- It increases
- It becomes zero
-
Reducing unemployment causes an economy operating inside its PPF to move in which direction?
- Outwards shift
- Along the frontier
- Inwards shift
- Towards the frontier
-
Which type of efficiency is achieved at any point on the production possibility frontier?
- Dynamic efficiency
- Allocative efficiency
- Productive efficiency
- Social efficiency
-
Which event causes an outward shift of an economy's production possibility frontier?
- Resource reallocation
- Technological progress
- Lower unemployment
- Higher spending
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