Question 1

The point where the PPF intersects the horizontal axis is

Accepted Answer

A)   unattainable.
B)   attainable and productive efficient.
C)   attainable but productive inefficient.
D)   attainable and neither productive efficient nor productive inefficient.E) B) and D)
F) A) and C)

Question 2

Exhibit 2-2 
-Refer to Exhibit 2-2.The production possibilities frontiers shown in this exhibit depict _______________ opportunity costs.

Accepted Answer

A)   constant
B)   increasing
C)   decreasing
D)   There is not enough information provided to answer this question.E) A) and B)
F) A) and C)

Question 3

Economic growth causes the PPF to

Accepted Answer

A)   shift leftward.
B)   shift rightward.
C)   remain constant.
D)   go from a straight line to a curve.E) C) and D)
F) B) and D)

Question 4

The economy moves from point A,where it produces 100X and 200Y,to point B,where it produces 200X and 150Y.It follows that

Accepted Answer

A)   point A is a productive inefficient point.
B)   point A may be a productive inefficient point.
C)   point A may be a productive efficient point.
D)   point B is a productive efficient point.
E)   b and cF) B) and E)
G) A) and B)

Question 5

Keisha can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.The opportunity cost of one unit of Y for Keisha is

Accepted Answer

A)   5 units of X.
B)   0.2 units of X.
C)   3 units of X.
D)   1/2 unit of X.
E)   none of the aboveF) A) and C)
G) All of the above

Question 6

Exhibit 2-4 
-Refer to Exhibit 2-4.This economy is productive

Accepted Answer

A)   efficient,if it operates at point B or C.
B)   efficient,if it operates at point A or D.
C)   inefficient,if it operates at point A or D.
D)   inefficient regardless of the particular point.
E)   both a and bF) B) and E)
G) All of the above

Question 7

Which of the following statements is false?

Accepted Answer

A)   If there are only two goods,guns and butter,it is possible to produce more of both goods through economic growth.
B)   If there are only two goods,guns and butter,it is possible to produce more of both goods if the economy is currently operating at a productive inefficient point.
C)   If there are only two goods,guns and butter,it is possible to produce more of both goods if the economy is currently operating at a productive efficient point.
D)   If there are only two goods,guns and butter,producing more of one means producing less of the other if the economy is currently operating at a productive efficient point.E) A) and B)
F) All of the above

Question 8

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis

Accepted Answer

A)   is greater along curve I.
B)   is greater along curve II.
C)   is the same along both curves.
D)   cannot be compared for the two curves without more information.E) B) and D)
F) A) and B)

Question 9

Exhibit 2-1 
-Refer to Exhibit 2-1.A movement from point B to point D

Accepted Answer

A)   could only happen through economic growth.
B)   is necessarily a movement from a productive efficient point to a productive inefficient point.
C)   is a movement from a productive efficient point to another productive efficient point.
D)   is necessarily a movement from a productive inefficient point to another productive inefficient point.E) B) and D)
F) B) and C)

Question 10

Exhibit 2-7 
-Refer to Exhibit 2-7.For which of the following is the statement "In order to get more civilian goods,we have to forfeit some military goods" true?

Accepted Answer

A)   a movement from A to C
B)   a movement from B to D
C)   a movement from C to D
D)   a movement from F to D
E)   none of the aboveF) A) and E)
G) A) and B)

Question 11

Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis) ?

Accepted Answer

A)   No implications,because the PPF deals only with resources in use.
B)   The PPF cannot be drawn if some resources are idle.
C)   With unemployed resources,we are at a point below the PPF.
D)   The PPF would be upward sloping.E) A) and B)
F) None of the above

Question 12

If Sean can bake bread at a lower opportunity cost than Jason,and Jason can produce paintings at a lower opportunity cost than Sean,it follows that

Accepted Answer

A)   Sean has a comparative advantage in paintings and Jason has a comparative advantage in baking bread.
B)   Both Sean and Jason have a comparative advantage in baking bread.
C)   Both Sean and Jason have a comparative disadvantage in producing paintings.
D)   Sean has a comparative advantage in baking bread and Jason has a comparative advantage in producing paintings.
E)   There is not enough information to answer the question.F) B) and E)
G) C) and D)

Question 13

Exhibit 2-2 2 is the relevant production possibilities frontier,a significant loss of resources will A)  move this society from point D to point G on PPF. B)  move this society to PPF. C)  move this society to PPF D)  not affect this society." class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,a significant loss of resources will

Accepted Answer

A)   move this society from point D to point G on PPF.
B)   move this society to PPF.
C)   move this society to PPF
D)   not affect this society.E) A) and B)
F) B) and C)

Question 14

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Accepted Answer

A)   a gain of resources.
B)   a loss of resources.
C)   technological improvement in the production of both goods.
D)   an increase in unemployment of some resources.E) C) and D)
F) A) and D)

Question 15

What is the reason for the law of increasing opportunity costs?

Accepted Answer

A)   There is no reason: it is just one of the laws of economics.
B)   Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it.
C)   The price of a good rises as more of it is demanded.
D)   As more of a good is produced,the taxes applied to the production of the good rise.
E)   c and dF) C) and D)
G) B) and C)

Question 16

In the production possibilities framework,economic growth is depicted by the PPF

Accepted Answer

A)   shifting leftward (toward the origin) .
B)   shifting rightward (away from the origin) .
C)   becoming a straight line rather than a bowed outward curve.
D)   becoming bowed outward rather than a straight line.E) A) and B)
F) A) and C)

Question 17

Give a definition of an advance in technology.Suppose that you are drawing a PPF for civilian goods and military goods,describe the effect on the PPF of an advance in technology in both civilian goods and military goods.How would the impact on the PPF be different if the technological improvement only helped in the production of military goods,but not civilian goods?

Accepted Answer

An advance in technology commonly refers...

Question 18

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the vertical axis

Accepted Answer

A)   is greater along curve I.
B)   is greater along curve II.
C)   is the same along both curves.
D)   cannot be compared for the two curves without more information.E) B) and C)
F) B) and D)

Question 19

It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 20

Using your own words,describe the law of increasing opportunity costs.Be sure to explain why this phenomenon occurs and how it helps to contribute to the shape of the production possibilities frontier.

Accepted Answer

People (and other resources)have varying...

Exam 2: Production Possibilities Frontier Framework

It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier.

Correct Answer
verified

Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis) ?

Correct Answer
verified

Correct Answer
verified
An advance in technology commonly refers...
View Answer

Which of the following statements is false?

Correct Answer
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Exhibit 2-7 -Refer to Exhibit 2-7.For which of the following is the statement "In order to get more civilian goods,we have to forfeit some military goods" true?

Correct Answer
verified

If Sean can bake bread at a lower opportunity cost than Jason,and Jason can produce paintings at a lower opportunity cost than Sean,it follows that

Correct Answer
verified

Keisha can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.The opportunity cost of one unit of Y for Keisha is

Correct Answer
verified

Exhibit 2-2 -Refer to Exhibit 2-2.The production possibilities frontiers shown in this exhibit depict _______________ opportunity costs.

Correct Answer
verified

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Correct Answer
verified

In the production possibilities framework,economic growth is depicted by the PPF

Correct Answer
verified

Exhibit 2-1 -Refer to Exhibit 2-1.A movement from point B to point D

Correct Answer
verified

What is the reason for the law of increasing opportunity costs?

Correct Answer
verified

The point where the PPF intersects the horizontal axis is

Correct Answer
verified

Economic growth causes the PPF to

Correct Answer
verified

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis

Correct Answer
verified

Using your own words,describe the law of increasing opportunity costs.Be sure to explain why this phenomenon occurs and how it helps to contribute to the shape of the production possibilities frontier.

Correct Answer
verified
People (and other resources)have varying...
View Answer

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the vertical axis

Correct Answer
verified

Exhibit 2-2 -Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,a significant loss of resources will

Correct Answer
verified

Exhibit 2-4 -Refer to Exhibit 2-4.This economy is productive

Correct Answer
verified

The economy moves from point A,where it produces 100X and 200Y,to point B,where it produces 200X and 150Y.It follows that

Correct Answer
verified

Exam 2: Production Possibilities Frontier Framework

It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier.

Correct AnswerverifiedShow Answer

Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis) ?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAn advance in technology commonly refers...View AnswerShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Exhibit 2-7 -Refer to Exhibit 2-7.For which of the following is the statement "In order to get more civilian goods,we have to forfeit some military goods" true?

Correct AnswerverifiedShow Answer

If Sean can bake bread at a lower opportunity cost than Jason,and Jason can produce paintings at a lower opportunity cost than Sean,it follows that

Correct AnswerverifiedShow Answer

Keisha can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.The opportunity cost of one unit of Y for Keisha is

Correct AnswerverifiedShow Answer

Exhibit 2-2 -Refer to Exhibit 2-2.The production possibilities frontiers shown in this exhibit depict _______________ opportunity costs.

Correct AnswerverifiedShow Answer

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Correct AnswerverifiedShow Answer

In the production possibilities framework,economic growth is depicted by the PPF

Correct AnswerverifiedShow Answer

Exhibit 2-1 -Refer to Exhibit 2-1.A movement from point B to point D

Correct AnswerverifiedShow Answer

What is the reason for the law of increasing opportunity costs?

Correct AnswerverifiedShow Answer

The point where the PPF intersects the horizontal axis is

Correct AnswerverifiedShow Answer

Economic growth causes the PPF to

Correct AnswerverifiedShow Answer

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis

Correct AnswerverifiedShow Answer

Using your own words,describe the law of increasing opportunity costs.Be sure to explain why this phenomenon occurs and how it helps to contribute to the shape of the production possibilities frontier.

Correct AnswerverifiedPeople (and other resources)have varying...View AnswerShow Answer

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the vertical axis

Correct AnswerverifiedShow Answer

Exhibit 2-2 -Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,a significant loss of resources will

Correct AnswerverifiedShow Answer

Exhibit 2-4 -Refer to Exhibit 2-4.This economy is productive

Correct AnswerverifiedShow Answer

The economy moves from point A,where it produces 100X and 200Y,to point B,where it produces 200X and 150Y.It follows that

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An advance in technology commonly refers...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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People (and other resources)have varying...
View Answer

Correct Answer
verified

Exhibit 2-2 -Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,a significant loss of resources will

Correct Answer
verified

Correct Answer
verified

Correct Answer
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