Question

iii. production possibilities curves
a. production possibilities curves

1. a graph that shows alternative ways to use resources is called a

_______________________ ___________ curve.

1. ______________ means that an economy is

using its resources in a way that produces the most
goods and services.

1. when resources are available but are not being used,

an economy experiences ______________________
b. law of increasing costs

1. the law of increasing costs says that opportunity costs increase when

________________________ switches from one item to another.

Explanation:

1. A production possibilities curve (PPC) shows different combinations of goods and services an economy can produce with its available resources.
2. Efficiency in an economic context means maximizing the output of goods and services from the available resources.
3. Unemployment (in a resource - usage sense) occurs when resources (like labor, capital) are not being utilized.
4. The law of increasing costs is related to production, and when an economy (as a producer) switches production from one item to another, opportunity costs rise.

Answer:

1. production possibilities
2. Efficiency
3. unemployment
4. a producer