Question 1

Exhibit 2-11 Production possibilities curves 
In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?

Accepted Answer

A)   A major natural disaster.
B)   An increase in resources.
C)   An advance in technology.
D)   A decrease in unemployment.E) A) and B)
F) None of the above

Question 2

Exhibit 2-1 Production possibilities curve data   Consumption  Goods  Capital  Goods 10091724304\begin{array} { | c | c | } \hline \begin{array} { c } 	ext { Consumption } \	ext { Goods }\end{array} & \begin{array} { c } 	ext { Capital } \	ext { Goods }\end{array} \\hline 10 & 0 \9 & 1 \7 & 2 \4 & 3 \0 & 4 \\hline\end{array} Consumption  Goods ​109740​ Capital  Goods ​01234​​  In Exhibit 2-1, according to the information, the opportunity cost of producing the 3rd unit  of capital is :

Accepted Answer

A)   3 units of consumption goods.
B)   4 units of consumption goods.
C)   6 units of consumption goods.
D)   7 units of consumption goods. E) All of the above
F) B) and C)

Question 3

The highest valued alternative that must be given up in order to choose an option is called the:

Accepted Answer

A)   opportunity cost.
B)   utility cost.
C)   scarcity expense.
D)   accounting cost.E) B) and C)
F) B) and D)

Question 4

The question "Should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question?

Accepted Answer

A)   The What to Produce question.
B)   The Why to Produce question.
C)   The How to Produce question.
D)   The For Whom to Produce question.E) B) and C)
F) B) and D)

Question 5

A point outside the production possibilities curve represents a combination of goods that is:

Accepted Answer

A)   inefficient.
B)   efficient.
C)   unattainable.
D)   attainable.E) B) and C)
F) All of the above

Question 6

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

Accepted Answer

A)   A choice of more computers and less education.
B)   A choice of more education and less computers.
C)   A reduction in the labor force.
D)   An increase in the quantity of resources.E) B) and D)
F) B) and C)

Question 7

A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:

Accepted Answer

A)   distance to the curve from the horizontal axis.
B)   distance to the curve from the vertical axis.
C)   distance from the origin to the curve.
D)   change in Y for each change in X along the curve.E) C) and D)
F) None of the above

Question 8

Why are all costs really "opportunity costs"? What is an opportunity cost of attending class?

Accepted Answer

An opportunity cost is what must be give...

Question 9

The opportunity cost of watching television is:

Accepted Answer

A)   all of the alternative programs that appear on other stations.
B)   zero because there is no money expenditure involved.
C)   the alternative use of the time foregone by watching the program.
D)   zero if it benefits you.E) B) and C)
F) A) and C)

Question 10

Exhibit 2-15 Production possibilities curve 
In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:

Accepted Answer

A)   40 fewer consumption goods because at point L, 20 capital goods and 40 consumption goods are produced.
B)   25 fewer consumption goods because at point M 30 capital goods and 25 consumption goods are produced.
C)   15 fewer consumption goods because to go from 20 capital goods to 30 capital goods, the economy must go from 40 consumption goods to 25 consumption goods.
D)   15 more consumption goods because to go from 30 capital goods to 20 capital goods, the economy must go from 25 consumption goods to 40 consumption goods.E) C) and D)
F) B) and C)

Question 11

In economics, the term marginal refers to:

Accepted Answer

A)   the change or difference from a current situation.
B)   man-made resources as opposed to natural resources.
C)   the satisfaction a consumer receives from a good.
D)   holding everything else constant in the analysis.E) A) and B)
F) A) and C)

Question 12

Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?

Accepted Answer

A)   The amount he spent, $10.
B)   Nothing, since he got his preferred choice.
C)   The Batman T-shirt.
D)   The X-Men T-shirt.E) A) and B)
F) B) and C)

Question 13

Answering the For Whom to Produce question means that:

Accepted Answer

A)   society is determining the size of the economic pie,
B)   scarcity no longer restricts production.
C)   society must have a method to decide who will be rich and who will be poor.
D)   an economy is selecting among its resources for production.E) None of the above
F) B) and C)

Question 14

Why must every nation answer the three fundamental economic questions?

Accepted Answer

A)   because of differences in the distribution of resources
B)   because some nations have better production technology
C)   because some nations are wealthy and others are poor
D)   because of the problem of scarcityE) B) and C)
F) None of the above

Question 15

A production possibility graph slopes down because of:

Accepted Answer

A)   the law of increasing costs.
B)   scarcity.
C)   inefficiency.
D)   unemployment.E) B) and D)
F) None of the above

Question 16

Exhibit 2-4 Production possibilities curve data   A  B  C  D  E  Capital goods 010203040 Consumer goods 200180140800\begin{array} { | l | r | r | r | c | c | } \hline & { 	ext { A } } &{ 	ext { B } } & 	ext { C } & 	ext { D } & 	ext { E } \\hline 	ext { Capital goods } & 0 & 10 & 20 & 30 & 40 \	ext { Consumer goods } & 200 & 180 & 140 & 80 & 0 \\hline\end{array} Capital goods  Consumer goods ​ A 0200​ B 10180​ C 20140​ D 3080​ E 400​​  In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect

Accepted Answer

A)   less growth in the future because it will use up its consumer goods.
B)   more growth in the future because of the accumulation of capital.
C)   the same amount of growth in the future but with a lower standard of living.
D)   the same amount of growth in the future but with a higher standard of living. E) C) and D)
F) A) and B)

Question 17

Exhibit 2-16 Production possibilities curve 
From the information in Exhibit 2-16, which of the following points on the production possibilities curve are attainable with the resources and technology currently available?

Accepted Answer

A)   A, B, C, E
B)   A, B, C, D, W
C)   E, U, W
D)   A, B, C, D, UE) None of the above
F) B) and D)

Question 18

Given the possible strategies listed below, design the best plan for increasing the country's future standard of living. i. build new factories
ii. print money
Iii. develop new production technology
iv. sacrifice consumer goods for capital formation
iv. tighten immigration policy
v. produce only enough capital goods to replenish depreciation.

Accepted Answer

A)   i, ii, and iii only
B)   i, iii,  and iv only
C)   ii, iv, and v only
D)   i, ii, iii, iv, and vE) A) and D)
F) A) and C)

Question 19

Exhibit 2-4 Production possibilities curve data   A  B  C  D  E  Capital goods 010203040 Consumer goods 200180140800\begin{array} { | l | r | r | r | c | c | } \hline & { 	ext { A } } &{ 	ext { B } } & 	ext { C } & 	ext { D } & 	ext { E } \\hline 	ext { Capital goods } & 0 & 10 & 20 & 30 & 40 \	ext { Consumer goods } & 200 & 180 & 140 & 80 & 0 \\hline\end{array} Capital goods  Consumer goods ​ A 0200​ B 10180​ C 20140​ D 3080​ E 400​​  According to the data in Exhibit 2-4, a total output of 140 units of consumer goods and 10 units of capital goods would:

Accepted Answer

A)   be unobtainable in this economy.
B)   be an efficient way of using the economy's scarce resources.
C)   result in the maximum use of the economy's labor force.
D)   result in a less than maximum rate of growth for this economy. E) A) and B)
F) A) and C)

Question 20

Exhibit 2-11 Production possibilities curves 
In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

Accepted Answer

A)   A major natural disaster
B)   An increase in consumption goods production this year
C)   An advance in technology
D)   An increase in unemploymentE) A) and B)
F) A) and C)

Exam 2: Production Possibilities Opportunity Cost and Economic Growth

The opportunity cost of watching television is:

Correct Answer
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Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

Correct Answer
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A production possibility graph slopes down because of:

Correct Answer
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Correct Answer
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Correct Answer
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A point outside the production possibilities curve represents a combination of goods that is:

Correct Answer
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In economics, the term marginal refers to:

Correct Answer
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The question "Should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question?

Correct Answer
verified

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

Correct Answer
verified

Why must every nation answer the three fundamental economic questions?

Correct Answer
verified

Correct Answer
verified

Why are all costs really "opportunity costs"? What is an opportunity cost of attending class?

Correct Answer
verified
An opportunity cost is what must be give...
View Answer

Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?

Correct Answer
verified

Exhibit 2-16 Production possibilities curve From the information in Exhibit 2-16, which of the following points on the production possibilities curve are attainable with the resources and technology currently available?

Correct Answer
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Correct Answer
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Exhibit 2-15 Production possibilities curve In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:

Correct Answer
verified

Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?

Correct Answer
verified

Answering the For Whom to Produce question means that:

Correct Answer
verified

The highest valued alternative that must be given up in order to choose an option is called the:

Correct Answer
verified

A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:

Correct Answer
verified

Exam 2: Production Possibilities Opportunity Cost and Economic Growth

The opportunity cost of watching television is:

Correct AnswerverifiedShow Answer

Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

Correct AnswerverifiedShow Answer

A production possibility graph slopes down because of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A point outside the production possibilities curve represents a combination of goods that is:

Correct AnswerverifiedShow Answer

In economics, the term marginal refers to:

Correct AnswerverifiedShow Answer

The question "Should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question?

Correct AnswerverifiedShow Answer

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

Correct AnswerverifiedShow Answer

Why must every nation answer the three fundamental economic questions?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why are all costs really "opportunity costs"? What is an opportunity cost of attending class?

Correct AnswerverifiedAn opportunity cost is what must be give...View AnswerShow Answer

Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?

Correct AnswerverifiedShow Answer

Exhibit 2-16 Production possibilities curve From the information in Exhibit 2-16, which of the following points on the production possibilities curve are attainable with the resources and technology currently available?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Exhibit 2-15 Production possibilities curve In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:

Correct AnswerverifiedShow Answer

Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?

Correct AnswerverifiedShow Answer

Answering the For Whom to Produce question means that:

Correct AnswerverifiedShow Answer

The highest valued alternative that must be given up in order to choose an option is called the:

Correct AnswerverifiedShow Answer

A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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An opportunity cost is what must be give...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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