Title: QUIZ: Production Possibilities Frontier (1/3) Scarcity and Opportunity Cost -- Economic Lowdown Video Series
Course: Recommended Resources for AP Macro from FRE > Section: Unit 1: Basic Economic Concepts

Q: What does a PPF graph display?
- Possible production options for an economy given its available resources
- The amounts of real output that buyers desire to purchase at each possible price level
- The amounts of real output that businesses will produce at each possible price level
- Total market value of all goods and services produced in an economy
A: Possible production options for an economy given its available resources

Q: With the current level of resources in Econ Isle, all points above the frontier are ______.
- attainable with available resources.
- possible with current resources.
- unattainable with available resources.
- probable with current resources.
A: unattainable with available resources.

Q: Why does scarcity exist?
- People are greedy.
- There are not enough resources to produce everyone’s wants.
- There are too many resources available.
- People have more wants than needs.
A: There are not enough resources to produce everyone’s wants.

Q: Scarcity forces people to choose, and when people choose:
- they bear an opportunity cost.
- they pay higher prices.
- total economic output increases.
- the frontier shifts outward.
A: they bear an opportunity cost.

Q: Water, oil, and land are examples of ________.
- Capital resources
- Natural resources
- Labor resources
- Human resources
A: Natural resources

Q: Producing on the frontier means that an economy
- should change its production combination by producing more of one good and less of the other.
- is at maximum production using all available resources.
- is not using all of its resources efficiently.
- is underemployed. 
A: is at maximum production using all available resources.