Production Possibility Curve is one of 9 topics in the Grade 10 Economics CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. The Production Possibility Curve (PPC) shows:
The maximum possible combinations of two goods an economy can produce with its available resources
The exact combination of goods an economy will definitely produce
Only the price of goods in an economy
The population growth rate of a country
Answer: The maximum possible combinations of two goods an economy can produce with its available resources — The PPC illustrates the maximum attainable combinations of two goods given an economy's current resources and technology, assuming full and efficient use of those resources.
Easy
2. A point lying exactly on the Production Possibility Curve represents:
An efficient combination of production using all available resources fully
An impossible, unattainable combination of production
A wasteful combination of production with unemployed resources
A combination that always involves foreign trade
Answer: An efficient combination of production using all available resources fully — Points on the curve itself represent efficient combinations where resources are fully and efficiently employed, unlike points inside the curve (inefficient) or outside the curve (currently unattainable).
Medium
3. What term describes a point that lies inside the Production Possibility Curve, where the economy is producing less than it is capable of?
Answer: An inefficient point — A point inside the curve represents an inefficient use of resources, since the economy could produce more of both goods by using its existing resources more fully or efficiently.
