Lesson 4.1.1.5

4.1.1.5 Production possibility diagrams Quiz: AQA Economics, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.1.1.5, Production possibility diagrams: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.

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The 20 questions

  1. What does a point lying inside a production possibility frontier represent?

    • Resource underutilisation
    • Economic growth
    • Unattainable output
    • Productive efficiency

  2. How is a point lying outside the production possibility frontier described?

    • Productively efficient
    • Allocatively efficient
    • Unattainable
    • Inefficient

  3. What type of efficiency is achieved at every point along a production possibility frontier?

    • Allocative efficiency
    • Social efficiency
    • Productive efficiency
    • Dynamic efficiency

  4. How many points on a production possibility frontier are allocatively efficient for a specific preference set?

    • Every boundary point
    • Only one point
    • No points
    • All points

  5. What economic measure is represented by the slope of a production possibility frontier?

    • Marginal utility
    • Economic growth
    • Inflation rate
    • Opportunity cost

  6. An economy moves from producing 40 capital goods and 20 consumer goods to 50 capital goods and 15 consumer goods. What is the opportunity cost of the extra 10 capital goods?

    • 20 consumer goods.
    • 10 consumer goods.
    • 15 capital goods.
    • 5 consumer goods.

  7. How is long-run economic growth illustrated on a production possibility frontier diagram?

    • Movement along PPF
    • Movement inside PPF
    • Outward PPF shift
    • Inward PPF shift

  8. What does an inward shift of an economy's production possibility frontier represent?

    • Increased unemployment
    • Higher economic growth
    • Improved allocative efficiency
    • Reduced productive capacity

  9. Which movement on a production possibility diagram represents an increase in unemployment?

    • Inward shift
    • Movement along frontier
    • Outward shift
    • Movement inside frontier

  10. What type of opportunity cost is illustrated by a straight-line production possibility frontier?

    • Constant
    • Zero
    • Increasing
    • Decreasing

  11. What type of opportunity cost causes a production possibility frontier to be bowed outwards?

    • Decreasing
    • Constant
    • Zero
    • Increasing

  12. Which factor causes an outward shift of an economy's production possibility frontier?

    • Lower consumer demand
    • Technological improvement
    • Higher unemployment
    • Resource depletion

  13. Which property is shared by every point located directly on a production possibility frontier?

    • Productive inefficiency
    • Allocative efficiency
    • Unattainability
    • Productive efficiency

  14. If output of consumer goods falls from 50 to 35 units, what is the opportunity cost?

    • 15 consumer goods
    • 50 consumer goods
    • 35 consumer goods
    • 5 consumer goods

  15. Moving from D (45 capital, 15 consumer) to E (50 capital, 0 consumer), what is the opportunity cost?

    • 15 consumer goods
    • 50 consumer goods
    • 5 capital goods
    • 3 consumer goods

  16. Reallocating resources from capital goods to consumer goods on a PPF causes future productive capacity to:

    • Decrease
    • Increase
    • Remain constant
    • Shift outward

  17. A key simplifying assumption of the standard production possibility frontier model is that:

    • Resources are unlimited
    • Technology is fixed
    • Markets are competitive
    • Prices remain equal

  18. Which of the following causes an outward shift of an economy's production possibility frontier?

    • Reduced unemployment
    • Higher consumer spending
    • Lower price levels
    • Increased labour supply

  19. An economy can produce 100 food or 50 cloth. What is the opportunity cost of 1 unit of cloth?

    • 0.5 food units
    • 50 food units
    • 100 food units
    • 2 food units

  20. Which change moves an economy from inside its production possibility frontier to a point on the frontier?

    • Increasing capital stock
    • Expanding trade
    • Reducing unemployment
    • Improving technology

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