PPF Segment 3 Flashcards
1
Q
As you _______ production of one good, the opportunity cost of producing the additional good will _________.
A
Increase; increase
2
Q
Anytime you move from one point to another along the frontier what is revealed?
A
Opportunity cost
3
Q
In reality, what is the frontier line?
A
A curved line, with the middle portion pushed outward
4
Q
A straight frontier line shows that opportunity cost…?
A
Remains constant when moving along the frontier
5
Q
Why does the law of increasing opportunity cost occur?
A
Some resources are better suited for some tasks than others
6
Q
What happens as you increases the production of one good?
A
The opportunity cost to produce the additional good will increase
