A Realistic Production Possibilities Curve

question 28

Multiple Choice

A realistic production possibilities curve:

• A) is concave while a simple PPF has constant opportunity costs.
• B) is straight lined while a simple PPFhas constant opportunity costs.
• C) is straight lined while a simple PPF is bowed outward.
• D) is concave while a simple PPFhas increasing opportunity costs.

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Definitions:

Price Elasticity Of Demand

The ratio of the percentage change in quantity demanded of a product or resource to the percentage change in its price; a measure of the responsiveness of buyers to a change in the price of a product or resource.

Percentage Changes

Calculations that measure the degree of change over time, expressed as a percentage to highlight growth or decline in quantitative data.

Price-Elasticity Of Demand

A gauge of the extent to which the amount of a product sought by consumers alters following a modification in its price.

Percentage Change

A mathematical calculation that demonstrates how much a quantity has increased or decreased relative to its previous value, often expressed as a percentage.