AP®︎ Microeconomics: Topic 1.3 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 1.3 of AP Microeconomics – Production Possibilities Curve.
Questions List
Topic 1.3
Question 1 Easy
This question tests the following: MKT-1.C.1
What does the PPC stand for in economics?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Microeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 1.3: Production Possibilities Curve
Learning Objective: MKT-1.C
a. Define (using graphs as appropriate) the production possibilities curve (PPC) and related terms. b. Explain (using graphs as appropriate) how the production possibilities curve (PPC) illustrates opportunity costs, trade-offs, inefficiency, efficiency, and economic growth or contraction under various conditions. c. Calculate (using data from PPCs or tables as appropriate) opportunity cost.
Essential Knowledge: MKT-1.C.1
The PPC is a model used to show the trade-offs associated with allocating resources.
Essential Knowledge: MKT-1.C.2
The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, underutilized resources, and economic growth or contraction.
Essential Knowledge: MKT-1.C.3
The shape of the PPC depends on whether opportunity costs are constant, increasing, or decreasing.
Essential Knowledge: MKT-1.C.4
The PPC can shift due to changes in factors of production as well as changes in productivity/technology.
Essential Knowledge: MKT-1.C.5
Economic growth results in an outward shift of the PPC.
