Question 1

Which one of the following concepts is illustrated by a production possibilities frontier?

Accepted Answer

A) profit 
B) consumption 
C) investment 
D) property rights 
E) tradeoff 
A) profit 
B) consumption 
C) investment 
D) property rights 
E) tradeoff

Question 2

Suppose a hurricane causes extensive devastation,destroying houses,roads,schools and factories.What is the effect of this hurricane on a production possibilities frontier consisting of consumption goods and capital goods?

Accepted Answer

A) It shifts outward at all points. 
B) It shifts inward at all points. 
C) There is a movement along the existing production possibilities frontier towards a less capital-intensive point. 
D) There is a movement along the existing production possibilities frontier towards a more capital-intensive point. 
E) There is a movement from the existing production possibilities frontier inwards towards a point with wasted or misallocated resources. 
A) It shifts outward at all points. 
B) It shifts inward at all points. 
C) There is a movement along the existing production possibilities frontier towards a less capital-intensive point. 
D) There is a movement along the existing production possibilities frontier towards a more capital-intensive point. 
E) There is a movement from the existing production possibilities frontier inwards towards a point with wasted or misallocated resources.

Question 3

When the market achieves allocative efficiency,

Accepted Answer

A) marginal benefit equals marginal cost. 
B) marginal benefit is at its maximum. 
C) marginal benefit minus marginal cost is positive. 
D) marginal cost minus marginal benefit is positive. 
E) marginal cost is at its minimum. 
A) marginal benefit equals marginal cost. 
B) marginal benefit is at its maximum. 
C) marginal benefit minus marginal cost is positive. 
D) marginal cost minus marginal benefit is positive. 
E) marginal cost is at its minimum.

Question 4

Consider a production possibilities frontier with corn production measured on the vertical axis and car production measured on the horizontal axis.Unusually good weather for growing corn shifts

Accepted Answer

A) the horizontal intercept of the PPF rightward and the vertical intercept of the PPF upward. 
B) the horizontal intercept of the PPF rightward but does not shift the vertical intercept of the PPF. 
C) the vertical intercept of the PPF upward but does not shift the horizontal intercept of the PPF. 
D) neither the horizontal intercept nor the vertical intercept of the PPF. 
E) the vertical intercept of the PPF downward and the horizontal intercept of the PPF leftward. 
A) the horizontal intercept of the PPF rightward and the vertical intercept of the PPF upward. 
B) the horizontal intercept of the PPF rightward but does not shift the vertical intercept of the PPF. 
C) the vertical intercept of the PPF upward but does not shift the horizontal intercept of the PPF. 
D) neither the horizontal intercept nor the vertical intercept of the PPF. 
E) the vertical intercept of the PPF downward and the horizontal intercept of the PPF leftward.

Question 5

Use the information below to answer the following questions.
Fact 2.3.1
In an eight-hour day,Andy can produce either 24 loaves of bread or 8 kilograms of butter.In an eight-hour day,Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-Given Fact 2.3.1,Andy and Rolfe

Accepted Answer

A) can gain from trade if Andy specializes in butter production and Rolfe specializes in bread production. 
B) can gain from trade if Andy specializes in bread production and Rolfe specializes in butter production. 
C) cannot gain from trade. 
D) can trade,but only Rolfe will gain. 
E) can trade,but only Andy will gain. 
A) can gain from trade if Andy specializes in butter production and Rolfe specializes in bread production. 
B) can gain from trade if Andy specializes in bread production and Rolfe specializes in butter production. 
C) cannot gain from trade. 
D) can trade,but only Rolfe will gain. 
E) can trade,but only Andy will gain.

Which one of the following concepts is illustrated by a production possibilities frontier?

Suppose a hurricane causes extensive devastation,destroying houses,roads,schools and factories.What is the effect of this hurricane on a production possibilities frontier consisting of consumption goods and capital goods?

When the market achieves allocative efficiency,

Consider a production possibilities frontier with corn production measured on the vertical axis and car production measured on the horizontal axis.Unusually good weather for growing corn shifts

Use the information below to answer the following questions. Fact 2.3.1 In an eight-hour day,Andy can produce either 24 loaves of bread or 8 kilograms of butter.In an eight-hour day,Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. -Given Fact 2.3.1,Andy and Rolfe

What Is Economics

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 2: The Economic Problem

Which one of the following concepts is illustrated by a production possibilities frontier?

Suppose a hurricane causes extensive devastation,destroying houses,roads,schools and factories.What is the effect of this hurricane on a production possibilities frontier consisting of consumption goods and capital goods?

When the market achieves allocative efficiency,

Consider a production possibilities frontier with corn production measured on the vertical axis and car production measured on the horizontal axis.Unusually good weather for growing corn shifts

Use the information below to answer the following questions. Fact 2.3.1 In an eight-hour day,Andy can produce either 24 loaves of bread or 8 kilograms of butter.In an eight-hour day,Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. -Given Fact 2.3.1,Andy and Rolfe

What Is Economics

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters