PRODUCTION POSSIBILITIES

SAMPLE QUESTIONS

1. What is a production possibilities curve? What does it portray?

2. Under what conditions would a country operate at a position on

the curve? Inside the curve? Outside the curve?

3. What accounts for the shape of the production possibilities

curve?

4. What economic principle is inherent in the concept (and shape)

of the production possibilities curve?

5. How is economic growth portrayed using the production

possibilities curves?