Question 1

Exhibit 2-8
  
-Refer to Exhibit 2-8.For Maya,the opportunity cost of producing one unit of good Y is ___________ unit(s)of good X.

Accepted Answer

A)  2.00 
B)  1.00 
C)  10.00 
D)  0.50 
A)  2.00 
B)  1.00 
C)  10.00 
D)  0.50

Question 2

If increasingly more units of good Y must be given up as each successive unit of good X is produced,then the PPF for these two goods is

Accepted Answer

A)  a downward-sloping straight line. 
B)  circular. 
C)  an upward-sloping curve. 
D)  a downward-sloping curve that is bowed outward. 
E)  a downward-sloping curve that is bowed inward. 
A)  a downward-sloping straight line. 
B)  circular. 
C)  an upward-sloping curve. 
D)  a downward-sloping curve that is bowed outward. 
E)  a downward-sloping curve that is bowed inward.

Question 3

Which of the following statements is true?

Accepted Answer

A)  Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. 
B)  Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. 
C)  Productive inefficiency implies that it is impossible to produce more of one good and no less of another. 
D)  Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. 
A)  Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. 
B)  Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. 
C)  Productive inefficiency implies that it is impossible to produce more of one good and no less of another. 
D)  Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.

Question 4

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

Accepted Answer

A)  a movement from A to C 
B)  a movement from B to D 
C)  a movement from F to D 
D)  a movement from B to A 
E)  none of the above 
A)  a movement from A to C 
B)  a movement from B to D 
C)  a movement from F to D 
D)  a movement from B to A 
E)  none of the above

Question 5

A PPF is bowed outward as a result of

Accepted Answer

A)  constant opportunity costs. 
B)  increasing opportunity costs. 
C)  decreasing opportunity costs. 
D)  scarcity. 
E)  choice. 
A)  constant opportunity costs. 
B)  increasing opportunity costs. 
C)  decreasing opportunity costs. 
D)  scarcity. 
E)  choice.

Question 6

An increase in the quantity of resources

Accepted Answer

A)  shifts the PPF leftward. 
B)  shifts the PPF rightward. 
C)  moves the economy to a new point up along a given PPF. 
D)  moves the economy to a new point down along a given PPF. 
A)  shifts the PPF leftward. 
B)  shifts the PPF rightward. 
C)  moves the economy to a new point up along a given PPF. 
D)  moves the economy to a new point down along a given PPF.

Question 7

Jose has one evening in which to prepare for two exams and can employ two possible strategies:
 
The opportunity cost of receiving a 90 on the Statistics exam in terms of the number of points on the Economics exam is

Accepted Answer

A)  79. 
B)  17. 
C)  11. 
D)  90. 
A)  79. 
B)  17. 
C)  11. 
D)  90.

Question 8

Exhibit 2-8
  
-Refer to Exhibit 2-8.For Maya,the opportunity cost of producing one unit of good X is ___________ unit(s)of good Y.

Accepted Answer

A)  2.00 
B)  1.00 
C)  10.00 
D)  0.50 
A)  2.00 
B)  1.00 
C)  10.00 
D)  0.50

Question 9

Exhibit 2-1
  
-Refer to Exhibit 2-1.If the economy is at point C,it follows that

Accepted Answer

A)  more guns and more butter could be produced with available resources than are currently being produced. 
B)  only more guns could be produced with available resources than are currently being produced. 
C)  only more butter can be produced with available resources than are currently being produced. 
D)  C is an unattainable point. 
A)  more guns and more butter could be produced with available resources than are currently being produced. 
B)  only more guns could be produced with available resources than are currently being produced. 
C)  only more butter can be produced with available resources than are currently being produced. 
D)  C is an unattainable point.

Question 10

Exhibit 2-5
  
-Refer to Exhibit 2-5.The opportunity cost of moving from point A to point B is approximately

Accepted Answer

A)  5,000 televisions. 
B)  5,000 fax machines. 
C)  10,000 televisions. 
D)  10,000 fax machines. 
A)  5,000 televisions. 
B)  5,000 fax machines. 
C)  10,000 televisions. 
D)  10,000 fax machines.

Question 11

Through war,many of the factories in country 1 are destroyed and many of its people are killed.As a result,the country's

Accepted Answer

A)  production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war. 
B)  PPF after the war has probably shifted to the left compared to its PPF prior to the war. 
C)  PPF after the war is probably the same PPF as before the war. 
D)  ability to produce goods and services has increased. 
E)  b and d 
A)  production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war. 
B)  PPF after the war has probably shifted to the left compared to its PPF prior to the war. 
C)  PPF after the war is probably the same PPF as before the war. 
D)  ability to produce goods and services has increased. 
E)  b and d

Question 12

Exhibit 2-2
  
-Refer to Exhibit 2-2.If PPF? 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. 
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.

Question 13

Points outside (or beyond)the PPF are

Accepted Answer

A)  attainable. 
B)  unattainable. 
C)  efficient. 
D)  inefficient. 
A)  attainable. 
B)  unattainable. 
C)  efficient. 
D)  inefficient.

Question 14

Michael can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.Vernon can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.It follows that

Accepted Answer

A)  Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y. 
B)  Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X. 
C)  Neither Michael nor Vernon has a comparative advantage in producing X. 
D)  Neither Michael nor Vernon has a comparative advantage in producing Y. 
E)  There is not enough information to answer the question. 
A)  Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y. 
B)  Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X. 
C)  Neither Michael nor Vernon has a comparative advantage in producing X. 
D)  Neither Michael nor Vernon has a comparative advantage in producing Y. 
E)  There is not enough information to answer the question.

Question 15

Points inside (or below)the PPF are

Accepted Answer

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

Question 16

In an eight-hour day,Andy can produce either 24 loaves of bread or 8 pounds of butter.In an eight-hour day,John can produce either 8 loaves of bread or 8 pounds of butter.The opportunity cost of producing 1 pound of butter is

Accepted Answer

A)  1/3 hour for Andy and 1 hour for John. 
B)  1 hour for Andy and 1 hour for John. 
C)  3 loaves of bread for Andy and 1 loaf of bread for John. 
D)  1/3 loaves of bread for Andy and 1 loaf of bread for John. 
E)  none of the above 
A)  1/3 hour for Andy and 1 hour for John. 
B)  1 hour for Andy and 1 hour for John. 
C)  3 loaves of bread for Andy and 1 loaf of bread for John. 
D)  1/3 loaves of bread for Andy and 1 loaf of bread for John. 
E)  none of the above

Question 17

Exhibit 2-7
  
-Refer to Exhibit 2-7.Which of the following statements is true?

Accepted Answer

A)  Points B and D are more efficient than points A and C. 
B)  If the economy's PPF is represented by PPF1, points A and B are productive efficient, while C and D are unattainable. 
C)  If the economy's PPF is represented by PPF2, points C and D are productive efficient, while A and B are unattainable. 
D)  both a and c 
A)  Points B and D are more efficient than points A and C. 
B)  If the economy's PPF is represented by PPF1, points A and B are productive efficient, while C and D are unattainable. 
C)  If the economy's PPF is represented by PPF2, points C and D are productive efficient, while A and B are unattainable. 
D)  both a and c

Question 18

Exhibit 2-6
  
-Refer to Exhibit 2-6. Which graph depicts the result of a decrease in the unemployment rate?

Accepted Answer

A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
E)  none of the above 
A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
E)  none of the above

Question 19

Exhibit 2-5
  
-Refer to Exhibit 2-5.The economy is currently operating at point F.The opportunity cost of moving to point E is approximately

Accepted Answer

A)  35 fax machines. 
B)  55 fax machines. 
C)  zero fax machines. 
D)  40 fax machines. 
A)  35 fax machines. 
B)  55 fax machines. 
C)  zero fax machines. 
D)  40 fax machines.

Question 20

Consider two points on the PPF: point A,at which there are 50 oranges and 100 apricots,and point B,at which there are 51 oranges and 98 apricots.If the economy is currently at point B,the opportunity cost of moving to point A is

Accepted Answer

A)  2 apricots. 
B)  1 orange. 
C)  98 apricots. 
D)  3 oranges. 
A)  2 apricots. 
B)  1 orange. 
C)  98 apricots. 
D)  3 oranges.

Exam 2: Production Possibilities Frontier Framework

Exhibit 2-8 -Refer to Exhibit 2-8.For Maya,the opportunity cost of producing one unit of good Y is ___________ unit(s)of good X.

If increasingly more units of good Y must be given up as each successive unit of good X is produced,then the PPF for these two goods is

Which of the following statements is true?

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

A PPF is bowed outward as a result of

An increase in the quantity of resources

Jose has one evening in which to prepare for two exams and can employ two possible strategies: The opportunity cost of receiving a 90 on the Statistics exam in terms of the number of points on the Economics exam is

Exhibit 2-8 -Refer to Exhibit 2-8.For Maya,the opportunity cost of producing one unit of good X is ___________ unit(s)of good Y.

Exhibit 2-1 -Refer to Exhibit 2-1.If the economy is at point C,it follows that

Exhibit 2-5 -Refer to Exhibit 2-5.The opportunity cost of moving from point A to point B is approximately

Through war,many of the factories in country 1 are destroyed and many of its people are killed.As a result,the country's

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

Points outside (or beyond)the PPF are

Michael can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.Vernon can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.It follows that

Points inside (or below)the PPF are

In an eight-hour day,Andy can produce either 24 loaves of bread or 8 pounds of butter.In an eight-hour day,John can produce either 8 loaves of bread or 8 pounds of butter.The opportunity cost of producing 1 pound of butter is

Exhibit 2-7 -Refer to Exhibit 2-7.Which of the following statements is true?

Exhibit 2-6 -Refer to Exhibit 2-6. Which graph depicts the result of a decrease in the unemployment rate?

Exhibit 2-5 -Refer to Exhibit 2-5.The economy is currently operating at point F.The opportunity cost of moving to point E is approximately

Consider two points on the PPF: point A,at which there are 50 oranges and 100 apricots,and point B,at which there are 51 oranges and 98 apricots.If the economy is currently at point B,the opportunity cost of moving to point A is

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