true or false

1. The law of increasing costs states that as a country produces less of one product and more of another, there is an increase in the resources needed to expand production of the second product.TRUE

   FALSE

2 points  

QUESTION 2

1. The line drawn on a production possibilities graph is known as the production possibilities frontier.TRUE

   FALSE

2 points  

QUESTION 3

1. Use this production possibilities graph to help you answer the following question.

   Any intersection of points outside the frontier (line) on a production possibilities graph would show that the economy is...

   growing due to a decrease of resources.

   growing due to an increase of resources.

   decreasing due to a decrease of resources.

   decreasing due to an increase in resources.

2 points  

QUESTION 4

1. Production possibilities graphs illustrate the variety of ways that prices can be decreased.TRUE

   FALSE

2 points  

QUESTION 5

1. Production possibilities graphs can help us understand how shortages occur.TRUE

   FALSE

2 points  

QUESTION 6

1. Economists often use production possibilities graphs to explore the choices and trade-offs that people make.TRUE

   FALSE

2 points  

QUESTION 7

1. An intersection of points outside the frontier (line) shows that an economy is growing.TRUE

   FALSE

2 points  

QUESTION 8

1. The line drawn on a production possibilities graph is called a _________.frontier

   shortage

   incentive

   intersection

2 points  

QUESTION 9

1. Which of the following cannot be shown on a production possibilities graph?growth

   scarcity

   efficiency

   opportunity cost

2 points  

QUESTION 10

1. Economists often use production possibilities graphs to explore scarcity.TRUE

   FALSE