Exam 2: Production Possibilities, Opportunity Cost, and Economic Growth

In Europe during the 14th century, the Black Plague killed 24 million people or close to 37 percent of the population. How would this affect the production possibilities curves for the countries of Europe at that time?

Exhibit 2-15 Production possibilities curve -In Exhibit 2-15, the production possibilities curve demonstrates:

Exhibit 2-8 Production possibilities curve data A B C D E F Capital goods 15 14 12 9 5 0 Consume goods 0 2 4 6 8 10 -As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:

Exhibit 2-18 Production possibilities curves -In Exhibit 2-18, a country is located at point A on its Year X production possibilities curve. In Year Y this same country is located at point B on its Year Y production possibilities curve. Which of the following could have brought about this outward shift in production possibilities curves?

The opportunity cost of an action is:

The production possibilities curve illustrates all of the following concepts except:

Exhibit 2-9 Production possibilities curve -If the economy represented in Exhibit 2-9 is operating at Point W:

Exhibit 2-15 Production possibilities curve -In Exhibit 2-15, if the economy produces no capital goods, what is the maximum number of consumer goods that can be produced?

Exhibit 2-14 Production possibilities curve -In Exhibit 2-14, this economy was located at point E but has now moved to point F.

Only socialist economies need to answer the What, How, and For Whom questions.

The opportunity cost of attending a movie is the purchase price of a ticket.

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?

All points on the production possibilities curve represent efficient levels of production.

Exhibit 2-3 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consume goods 20 18 14 8 0 -According to the data given in Exhibit 2-3, the production of 1 unit of capital goods and 14 units of consumer goods:

A production possibility graph slopes down because of:

Which of the following is not one of the three fundamental economic questions?

Which word best completes the following sentence? A rational decision maker always chooses the option for which marginal benefit is __________ marginal cost.

Exhibit 2-17 Production possibilities curve -In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:

Exhibit 2-16 Production possibilities curve -In Exhibit 2-16, which of the following points on the production possibilities curve are efficient production points?

Exhibit 2-16 Production possibilities curve -In Exhibit 2-16, which of the following points on the production possibilities curve are unattainable with the resources and technology currently available?