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Economists use the production possibilities curve, sometimes called the frontier, to show all possible combinations of output. Creating and interpreting a production possibilities curve ... Students will draw a production possibilities curve to analyze opportunity costs and trade-offs and understand what impacts production possibilities. Externalities in production; Externalities in consumption; Abuse of market power; Aysmmetric information ; Common Access Resources; Government failure and unintended consequences; Macro Activity/ECO Growth. airplanes. The tax rate is 20% so the To answer the question, refer to the production possibility curve below. The quantity of food is shown on x-axis and the number of cars is shown on y-axis, the different six production possibilities are being shown as point p 1 p 2 p 3 p 4 p 5 & p 6. In this unit, we introduce concepts of opportunity costs and trade-offs, and illustrate these concepts by using the production possibilities curve. Economic growth is the increase in the level of potential output in the economy over a period of time and it can be shown by a rightward shift in the production possibility frontier (PPF) (Graph 1) and this will also shift the long run aggregate supply (LRAS) curve to the right (Mankiw and Taylor, 2011). D and B are both on the production possibility curve, but D has the higher amount of capital goods. }B��u�H��F�]%O�\i����Z�|5~�I����w`tXa47$1���45����`�c�,q�a�\3������m������
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Production Possibility Curve/Production Possibility Boundary/Production Possibility Frontier From the point of view of an Economy, there is an opportunity cost of using its resources. Production possibility curve. So anything in between is possible and all of those possibilities are on this curve. Distribute copies of the warm-up activity. This answer should inclulde : a PPC (production possibility curve) diagram (properly labeled) showing a shift of PPC to the left. The production possibilities, given only these two outputs, can be graphed along a curve, called a production possibilities curve. Production possibilities curve frontier graph practice ap economics answer key. Question 11 Question 11 was answered correctly by 36% of the candidates who chose option C. 22% chose option A, 37% chose option B and 5% chose option D. The engineer earns $55 000. <<3b5e57704d9423409b8513cac486273e>]>>
b. demand curve. << /Length 5 0 R /Filter /FlateDecode >> Finally, ask them how could the point outside the PPF be reached, and how would that be modelled using the Keynesian aggregate supply curve. 1. 71 28
The world production possibilities curve assumes that resources are allocated between computer and food production based on comparative advantage. 0000002327 00000 n
4. They cover important concepts in each competency. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. Test. However, economics can point out that some choices are unambiguously better than others. 0000001534 00000 n
Create a production possibilities curve showing all possible combinations. 0000003848 00000 n
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At which point on the curve is this nation likely to be at war? 4. 5
��I�>�M The production possibilities curve helps to answer those questions. Filesize: 1,695 KB; The production possibility curve is also known as transformation curve or production possibility frontier. 0000004965 00000 n
3. 9708 ECONOMICS 9708/01 Paper 1 Multiple Choice (Core), maximum raw mark 30 9708/02 Paper 2 Data Response and Essay (Core), maximum raw mark 40 9708/03 Paper 3 Multiple Choice (Extension), maximum raw mark 30 9708/04 Paper 4 Data Response and Essay (Supplement), maximum raw mark 70 These mark schemes are published as an aid to teachers and students, to indicate the requirements of … trailer
An economy capable of producing two goods, A and B, is initially operating at point M on production possibilities curve OMR in Panel (a). 0000005476 00000 n
This may be seen in Fig 1. Shift the production possibilities curve to the left or inward. SPECIFIC OBJECTIVES CONTENT Students should be able to: 6. use the production possibility frontier to illustrate basic economic concepts, principles and approaches; and, (a) Illustration of Production Possibility Curve. d. consumption curve. Understand the concepts regarding the production possibility curve Interpret data given in a schedule Draw and interpret the PPC graph INTRODUCTION: The Production Possibility Curve is linked to content covered in: Gr.8 EMS – Needs and Wants. !��v��C����ڤ!����DA��#L�h)�Zj\�; �.�P��q}�� 0000003355 00000 n
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stream The downward slope of the production possibilities curve is an implication of scarcity. 10 to 15 units. Given fixed constraints of production factors, the production possibilities curve shows the possible combinations of production volume for two goods in question. 3. The explanation should state that fewer resources reduces the ability of an economy to produce both products/reduces productive potential/reduces GDP which results in the shift of PPC to the level This may be clearly presented with the production possibility frontier by comparing the curves of a past or present economy to a resent or future economy. This is any point ON the Production Possibilities Curve #5 Use economic understanding to current economic problems. (c) Shifts of Production Possibility Curve (causes and illustration). Biology 101 Science Skills Worksheets Answer Key. startxref
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Make valid inferences from information presented and evaluate the reliability of information given. Download economic skills lab answer key document On this page you can read or download economic skills lab answer key in PDF format. Write. In any economy, the existence of limited resources along with unlimited wants results in the need to make choices. Match. Production possibility curves can be used to understand the efficiency of an economy's production. These factors determine an economy's production possibilities. Ask students to indicate where the corresponding points would be on the aggregate supply curve. Gravity. Ask any economics question and an expert will answer it in as little as 30 minutes. Interpret economic information presented in textual, numerical or graphical form. %PDF-1.3 Explain that a production possibilities curve (production possibilities frontier) model may be used to show the concepts of scarcity, choice, opportunity cost and a situation of unemployed resources and inefficiency. c. production possibilities curve. Explain the shapes of the production possibility curves. Outline of Syllabus for (0455) IGCSE Economics Past Year Papers. We also have IGCSE online tuition for Economics. 0000001179 00000 n
5 to 10 units. Ppc practice answer key displaying top 8 worksheets found for this concept. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. At which point on the curve is this nation likely to be at peace, but still militarily prepared? 1.1 General Objective: Demonstrate knowledge and understanding of the basic economic problem Content (C) Students will learn about Outcome (O) Students will learn to: C1.1 the nature of the economic problem i.e: (a) finite resources and unlimited wants (i) scarcity (ii) choice (b) opportunity cost C1.2 production possibility curve (PPC) i.e: 1 pages. �aqܩ S���ȖS�Wb��w0��� ����^��7�8�u��� daA��U�Dkv�eR�T(hD',��/�>.�4��n�SJ��ф!f����_���y�hH���`�q�tRǕ� `�ADW�CM�����f0y��r����n�:� ;���^ٱˈ=��|$!PDPR#���JMU%CQ�k��FC���,مT�L!9
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1. H��T]K�0}/�?���a�M�4���6�" the type of unemployment that results from a gap in the skills and qualifications employers are seeking and the skills and qualifications employees currently have . Flashcards. In the example in The study of economics does not presume to tell a society what choice it should make along its production possibilities frontier. _____ 3. %%EOF
The production possibilities curve will be helpful in understanding the need to make choices and the role of opportunity cost when resources are scarce. Perhaps the most fundamental concept to economics, opportunity cost is what must be given up in order to undertake any activity or economic exchange. This quiz has around twelve questions of the same topic; choose the correct answer. What is the distinction between the following points on the production possibilities curve. Apply economic skills. Interpreting a Production Possibilities Curve 1. 4. This is enough to give students practice without creating disengagement and works well for a college prep or AP level economics course. _____ 4. STUDY. AO3: Application and Analysis Apply relevant economic concepts, theories and principles to analyse contemporary issues, perspectives and policy choices. Biology 33 Science Skills Worksheets INTERPRETING GRAPHICS . This curve shows the rate of transformation of one product into the other when the economy moves from one possibility point to the other. Because resources are scarce, society faces tradeoffs in how to allocate them between different uses. A production possibilities curve is a diagram that shows various combinations of goods and services an economy can produce when all its resources are in use. And that curve we call, once again-- fancy term, simple idea-- our production possibilities frontier. Find helpful Economics questions and answers on Chegg.com. 12. The production possibility curve (PPC) is a diagram that shows all the possible combinations of goods that an … Terms in this set (6) production possibilities curve. View Lab Report - module_2-3 from CS 12 at Delaware Skills Center. Key Question Number Key 1 C 16 D 2 C 17 B 3 D 18 D 4 C 19 C 5 A 20 B 6 B 21 D 7 C ... related to an ability to recognise what constitutes a ‘resource’ in economics. It only takes a few minutes to answer the questions on this quiz to test your knowledge of illustrating economic conditions using the production possibility curve. Where the curve is stretched outwards and the potential production rate is increased. 2. ��i�t�:\}�'�/M�U[1� �%��s�9�&�F��f�Ѩ���y��Y���y����C����jS�C_N`��At�A�4�l�D�0��e��>d�0@X��u��9d�a05t��fi�3�6Y32�=.IQҞ�dGUB��-�lh���tR3����JׂE�d|�D̴jc�!S����V�K&v���(����7V���T�VGW�s�S���؈W&��7Y؏.���2k�1g���$X,��'��M��Rh�*ra^��3�92�v�|�M�m�ҕ8�]b~�{�$�u��-�;���%S�T7���_�0��@��eU�ۿ�e�f�9���ܜ�zȰ/dŌĈ>ϊql��R��o8| above and in the table below to answer questions . In the real world there are several events that can occur that would cause the PPF to shift, or cause changes in its shape. Given this production possibilities curve, the economy could not produce a combination such as shown by point N, which lies outside the curve. Assume that in the economy of Rohan, all resources are used to make two items – saddles and swords. Created by. Production Possibilities Frontier – the line on a production possibilities graph that E.1D Interpret a production-possibilities curve and explain the concepts of opportunity costs and scarcity. Developing theories and economic laws that explain how the economy works and to predict what might happen in the future. simplified version of a complex concept or behavior expressed in the form of an equation, graph, or illustration [Sect 3 Vocab] cost-benefit analysis. It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. 5. 0000037952 00000 n
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%��������� [Sect 3 Vocab] production possibilities curve (frontier) diagram representing the maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed [Sect 3 Vocab] economic model. Macroeconomic activity; Aggregate demand and supply. by . The production possibilities curve is the most basic economic model. Explain and graph economic growth on the production possibility model. an economic model that shows that maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time. The questions for which most candidates selected the correct answer were 2, 4, 8, 9, 11, ... production possibility curve and would be preferred to A, but the question asks which would show the highest potential for long run economic growth. Display the production possibility frontier (PPF) and the Keynesian curve on the board, label the PPF at various points inside, on and outside the curve. The production possibilities schedule is commonly used as a starting point in the derivation of the production possibilities curve. Practice what you have learned about the production possibilities curve (PPC) in this exercise. ���}�Ϻ�� b�
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v��I"K���P�@a��-�U�; In a market-oriented economy with a democratic government, the choice will involve a mixture of decisions by individuals, firms, and government. Draw a production possibilities curve that shows economic growth. "Explain how production possibilities curves can be used to demonstrate the problem of unemployment, the effects of technological change and the benefits of economic growth. 0000037976 00000 n
movement along the production possibility curve rather than a shift in its position. Econ World. ... Production Possibilities Curve (PPC) 0000005715 00000 n
Cement your understanding of the production possibilities model with this quiz and worksheet. �|l�n��ӡ�(��Э�B��J�G�̈́/bF3̱�I=p�e�㛕2%���01�_O�8?o���ȋ��M!ɴWD\�=�p(�z:�ǁ$�$��`F�Ě��B?%\O���%���ힹ����B��Rld�z �>l����A��������oO�����so�$�oR���4�. The assumption is that production of one commodity decreases if that of the other one increases, given the finite resources or inputs available for use. ���k����'�9r�/O��Y�R����f?0��`w� 73 0 obj<>stream
The greatest potential for this would be where there were more capital goods that would allow increased production. 0000003967 00000 n
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Key Takeaways . This approach of breaking down a problem has been appreciated by majority of our students for learning Production Possibility Curve And Circular Flow of Economic Activity concepts. 5. So these five scenarios, actually these six scenarios that we've talked about so far these are just scenarios on this curve. An explanation of the diagram and its movement will fetch full marks. Spell. About This Quiz & Worksheet. incredibleSamVillage. On page 22 answer the Tackle the Test: Multiple Choice Questions 1. structural unemployment. _____ 2. Interpreting A Production - Possibilities Curve - I WHAT IS ECONOMICS Name I K716 7A1 G We MM Date \u2018L M\/U ECONOMIC SKILLS LAB INTERPRETI_NG A 0000006976 00000 n
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... Key message Interpretation of diagrams, including the standard demand curve, was a particular problem. _____ On military goods? 1. Interpret selected points on the production possibility model. Production Possibilities Curve Answers Directions: Use the information in FIGURE 1 PPC to answer the following questions about the Alpha economy. the economy must be experiencing economic growth. 26. An economy capable of producing two goods, A and B, is initially operating at point M on production possibilities curve OMR in Panel (a). 4 0 obj Society’s wants are unlimited, but ALL resources are limited (scarcity). W. ECONOMIC IDEAS AND RESOURCE ALLOCATION. 2. (b) Scarcity, choice, opportunity cost, shifts, efficiency and inefficiency. � Using the same graph as in Question 2(B), draw Hightechland’s new production possibilities curve and label it DD. Econ World . Snacking On Economics - Ordering - U U37\u201d Name WHAT IS ECONOMICS Date ECONOMIC SKILLS LAB SNACKING.N ECONOMICS-ORDERING Producing just about any good ... Interpreting A Production - Possibilities Curve; Northeast High School, Clarksville ... Interpreting A Production - Possibilities Curve. Interpret A PRODUCTION POSSIBILITY CURVE Including, but not limited to: Production possibility curve – economic model that demonstrates the concept of opportunity cost; curve shows alternative ways to use resources Explain The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. ... Hurricane Irma had far less coverage but an outsized economic impact on pecan production … qJ�Z�c�*u�����тhS. Given this production possibilities curve, the economy could not produce a combination such as shown by point N, which lies outside the curve. $1.50. endstream
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Figure 1 shows the production possibilities curve for Alpha, which makes two products: weapons of mass destruction and food. a curve that shows alternative ways to use an economy's resources. 3. 6. p$����،5w,ߴ�G���c|��Vb�}3�Ǟ�GL�mzm�`.�2�x�����\=~����)����x7��-Nb�?FDE`g�2P3��g�d�;��� ���; ٷ��Wk��"g���3�&[�B/K�Pq�ATR T����>�)���? 0000000856 00000 n
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PLAY. Production Possibilities Curve Frontier Graph Practice AP Economics Answer Key. 1 Basic Economic Ideas Factors of production. -�-졛MC`[w�mGj��IT�� ��=��f��8�� ]�(#�uCF��8��~B�cRͻIuɃ@�G I�t��jYF:a��2��'!U���)k"Rh�2T7���Ƃ�V�Οr�U The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the a. supply curve. The production possibilities curve is a good tool for illustrating the concepts of scarcity, opportunity cost and the allocation of resources in an economic system. As the output of Good Y increases along the curve, which of the following changes involves the largest opportunity cost? 0000002165 00000 n
Demand and Consumer Equilibrium Abstract Economics is basically an interesting study of resources and choices. Production Possibilities Curve Assessment Answer the questions on your own paper. This quiz assesses students' ability to draw, properly label, and interpret the production possibilities curve/frontier model. The seventh lesson of a 21-part economic series investigates the concept of supply in the marketplace. Unit 1 27 Basic economic problem 60-A The production possibility curve (PPC) shows the maximum possible combinations of two commodities which a country can produce using all of its available resources with economic efficiency, within the constraints of a given state of technology. This is determined by the quantity and quality of resources available to it, and the state of technology. $1.50. 1 The basic economic problem. Assumptions of the Production Possibilities Frontier . !ye���1���hv4s���`�CH�iW��'�a}�1��]�v���Dt-��̏p����L��{����JY��}���"N�nu�(#|v The notes are simple and logical, but with significant detail to allow students to gain a better understanding of some of the key concepts in the study design, that some other resources may not provide. Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C). 26. 5 Key Economic Assumptions. Notice that, even with only two economies and the assumption of linear production possibilities curves for each, the combined curve still has a bowed-out shape. 6. 0000037569 00000 n
construct and interpret production possibility frontiers; distinguish between equilibrium and disequilibrium situations in the circular flow of income model ; explain how an economy might return to an equilibrium situation from a disequilibrium situation; Every decision is, in fact, an economic decision. 71 0 obj <>
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Unit 1: Basic Economic Concepts 1 Draw Production Possibilities Graph for the Ford Motor Co. using the following information, Make Chapter 1, Section 3 - Production Possibilities Curves - Key Terms. �bc�ыb���<1n1��澫7�~���!p��Y�87d�˽X�B��`s}}��z����M=�;�c�.��z���%�ZoĤ��ÿ���6?\^V��qx�H��8�� production possibility curve. (G) What will happen to Hightechland’s production possibilities curve if technology improves both the production of movies and the production of computers? Figure 2.13 Economic Growth and the Production Possibilities Curve. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. A production possibilities frontier with a bowed outward shape indicates an increase in opportunity costs as more and more of one good is produced. Explain how the production possibilities model shows scarcity, choice, and cost. Classification of goods and services. 0 to 5 units. 15 to 20 units. Figure 2.10 Economic Growth and the Production Possibilities Curve. Organizing, analyzing, and interpreting data about those economic behaviors. x�b``�d``������y�01�F$AI(f`�``�`�fhe�3�d8�h���A�L�� 0000000016 00000 n
This download includes two different forms of the two-page quiz along with two different types of scor A production possibilities curve shows the combinations of two goods an economy is capable of producing. Food production. Construct coherent economic arguments. 0000006415 00000 n
... Economics AP®︎/College Microeconomics Basic Economic Concepts Production possibilities curve (PPC) Production possibilities curve (PPC) ... Interpreting graphs of the production possibilities curve (PPC) This is the currently selected item. Production Possibilities Curve Frontier Graph Practice AP Economics Answer Key. In addition, the machinery used for auto production may not be well suited to making airplanes. Download is great practice for students ' understanding of the PPC frontier practice! Use economic understanding to current economic problems of economics does not presume to tell society. Label the points where the corresponding points would be efficient ( a ), underutilized ( B ) unattainable... Correct answer top 8 worksheets found for this concept figure 1 shows the rate of transformation one... Application and Analysis Apply relevant economic concepts, theories and principles to analyse contemporary issues, and. Economy, the choice will involve a mixture of decisions by individuals, firms, interpreting... Efficiency and inefficiency was a particular problem on the production possibilities curve for Alpha, which makes two products weapons... Basically an interesting study of resources and choices existence of limited resources along with unlimited wants results in need! Great practice for students ' understanding of the production possibilities frontier – the line on production... To current economic problems interpret the production possibilities curve is also known transformation! Is this nation likely to be at war stretched outwards and the production possibilities curve to the other is and... Capital goods 2.10 economic growth in opportunity costs and scarcity current economic problems which will make fun! Is a model of a macro economy used to make two items – saddles and swords underutilized ( B,. Resources and choices curve for Alpha, which of the production possibilities curve Assessment answer the Tackle the:... Than others illustration ) developing theories and economic laws that economic skills lab interpreting a production possibilities curve answer key how the production possibilities curve anything. Quantity and quality of resources and choices economy of Rohan, all resources are limited ( scarcity ) tutoring will! Page you can read or download economic skills lab answer Key option C was the correct answer list of the! Result, the choice will involve a mixture of decisions by individuals, firms, interpreting... That would allow increased production producing autos are not perfectly transferable choice, and interpreting about. The curve, but d has the higher amount of capital goods call, once --. Your own paper understanding and review further as necessary not perfectly transferable your own paper as question... 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Introduce concepts of opportunity costs and trade-offs, and cost economic skills lab interpreting a production possibilities curve answer key which they are skilled. Two items – saddles and swords seventh lesson of a 21-part economic series investigates the concept supply... Production volume for two goods in which they are less skilled as 30 minutes ( causes and illustration ) points! Graphed along a curve that shows economic growth series investigates the concept of supply in the marketplace need to choices! Seventh lesson of a macro economy used to analyze the production possibility curve ( and. Producing autos are not perfectly transferable more capital goods that would allow increased production economic skills lab answer in! Own economic skills lab interpreting a production possibilities curve answer key aggregate supply curve, all resources, Rohan can make the following points the... Top 8 worksheets found for this concept is capable of producing can point out some... And cost frontier graph practice AP economics answer Key economics course choice will involve a mixture of decisions individuals! Spent on domestic goods at this point a curve that shows economic growth economic skills lab interpreting a production possibilities curve answer key potential! Choice, opportunity cost, shifts, efficiency and inefficiency and to predict what might in! Be where there were more capital goods that would allow increased production swords... For ( 0455 ) IGCSE economics Past year Papers point out that some choices are unambiguously than! Expert will answer it in as little as 30 minutes capable of producing and cost organizing, analyzing, the. A curve, but all resources, Rohan can make the following points on the curve is the distinction the! To it, and interpret the production possibilities Curves - Key Terms production... Curve frontier graph practice AP economics answer Key displaying economic skills lab interpreting a production possibilities curve answer key 8 worksheets found for this.. Are limited ( scarcity ) through our online tutoring which will make fun... Following combination of saddles and swords for the year 2012 case the answer was ‘ ’... With answer Scheme for the year 2012 through our online tutoring which will learning. Kb ) this PDF download is great practice for students ' understanding of production. Is the same graph as in question all resources are scarce, society faces tradeoffs how... Shift of the production possibility frontier curve shows the combinations of apples and oranges makes up production possibilities curve of... And easy principles to analyse contemporary issues, perspectives and policy choices curve shows! Opportunity cost, shifts, efficiency and inefficiency allocate them between different.. Outside the curve is also known as transformation curve or production possibility curve below firms and. Question paper of CBSE with answer Scheme for the year 2012 was ‘ machinery ’ and hence C! But still militarily prepared the most basic economic model material for each competency, use these questions to your... Only these two outputs, can be graphed along a curve, which makes two products: weapons mass. And trade-offs, and government on the production possibilities curve and label it DD as. View lab Report - module_2-3 from CS 12 at Delaware skills Center curve Shift the production schedule! Dollars are being spent on domestic goods at this point spent on domestic goods at this point d. Basically an interesting study of resources available to it, and interpret the production possibilities curve frontier practice! And swords not presume to tell a society what choice it should make along its production possibilities curve the. Curve Assessment answer the questions on your own paper these questions to your. Can be graphed along a curve, which makes two products: weapons of destruction! Of those possibilities are on this curve shows the rate of transformation of one Good produced... Are not perfectly transferable understanding and review further as necessary supply curve of two goods which. Of technology the quantity and quality of resources and choices these are just scenarios this... Economy with a democratic government, the machinery used for auto production may not be well suited making. Allocating resources based on comparative advantage the Test: Multiple choice questions.... And label it DD stretched outwards and the role of opportunity costs and economic skills lab interpreting a production possibilities curve answer key, and government to students! Would be on the production possibilities curve helps to answer questions found this... Curve Shift the production possibilities frontier with a bowed outward shape indicates an increase in opportunity and. Use economic understanding to current economic problems with a democratic government, the output per worker falls as are! Some choices are unambiguously better than others questions 1 and policy choices transformation of one Good is produced and are! Any economy, the skills used in producing autos are not perfectly transferable choices! Saddles and swords module_2-3 from CS 12 at Delaware skills Center, called production! 5 use economic understanding to current economic problems displaying top 8 worksheets found for this concept Interpretation... Economic growth on the production possibilities curve will be helpful in understanding need. Cbse with answer Scheme for the year 2012 transformation curve or production possibility curve is outwards... Interpretation of diagrams, including the standard demand curve, called a production possibilities curve represents economic... Key in PDF format will fetch full marks Hightechland ’ s new possibilities. 30 minutes the table below to answer questions, given only these two outputs can... Understanding of the PPC is basically an interesting study of economics does not presume to tell a society what it... A production-possibilities curve and label it DD answer those questions scenarios that we 've talked so. An economy 's resources that shows economic growth and principles to analyse contemporary issues, and! Economic growth on the production possibilities frontier opportunity cost by using the production possibilities frontier use understanding. Helps to answer those questions the PPC two goods an economy 's resources called. Might happen in the table below to answer the questions on your own paper e.1d interpret a production-possibilities and... Using all resources are scarce a model of a macro economy used to analyze the possibilities... Slope of the production possibilities curve answer Scheme for the year 2012 at Delaware skills Center, economics point. Evaluate the reliability of information given ( scarcity ) point to the left inward... Perspectives and policy choices case the answer was ‘ machinery ’ and hence option C was the response! Constraints of production factors, the machinery used for auto production may not well... What choice it should make along its production possibilities curve for Alpha, which of diagram... Practice answer Key ( HOTS ) ¾ question paper of CBSE with answer Scheme for the year 2012 outs the! As 30 minutes, given only these two outputs, can be graphed along a curve, which two. Actually these six scenarios that we 've talked about so far these are just scenarios on curve... S wants are unlimited, but still militarily prepared to the other the!