Exhibit 2-8 Production possibilities curve data \[\begin{array} { | l | r | r | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\ \hline \text { Capital goods } & 15 & 14 & 12 & 9 & 5 & 0 \\ \text { Consume goods } & 0 & 2 & 4 & 6 & 8 & 10 \\ \hline \end{array}\] -As shown in Exhibit 2-8, a total output of 14 units of consumer goods and 1 unit of capital goods is:

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

Exhibit 2-4 Production possibilities curve data \[\begin{array} { | l | r | r | r | r | r | } \hline & { \text { A } } &{ \text { B } } & { \text { C } } & \text { D } & \text { E } \\ \hline \text { Capital goods } & 0 & 10 & 20 & 30 & 40 \\ \text { Consume goods } & 200 & 180 & 140 & 80 & 0 \\ \hline \end{array}\] -According to the data given in Exhibit 2-4, the production of 140 units of consumer goods and 10 units of capital goods:

A) is possible but would be inefficient. B) may be a result of unemployment. C) may be a result of unused natural resources. D) all of the above. E) none of the above. A) is possible but would be inefficient. B) may be a result of unemployment. C) may be a result of unused natural resources. D) all of the above. E) none of the above.

Exhibit 2-10 Production possibilities curve data \[\begin{array} { | l | r | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\ \hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\ \text { Consumption goods } & 25 & 23 & 19 & 13 & 0 \\ \hline \end{array}\] -Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must ____, because ____.

A) increase; the production possibility table shows only the maximum efficiency points B) increase; of the law of increasing costs C) decrease; of the law of increasing costs D) decrease; of the finite nature of the resource base E) increase; capital goods will assist in the production of consumer goods A) increase; the production possibility table shows only the maximum efficiency points B) increase; of the law of increasing costs C) decrease; of the law of increasing costs D) decrease; of the finite nature of the resource base E) increase; capital goods will assist in the production of consumer goods

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

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, a total output of 14 units of consumer goods and 1 unit of capital goods is:

(Multiple Choice)

4.7/5

(75)

Question 101

Any point inside the production possibility curve is:

(Multiple Choice)

5.0/5

(80)

Question 102

The opportunity cost of an activity means the:

(Multiple Choice)

4.8/5

(77)

Question 103

Each and every point along a production possibilities curve represents an efficient output option for an economy.

(True/False)

4.8/5

(89)

Question 104

A nation can accelerate economic growth by increasing its production of consumer goods.

(True/False)

4.9/5

(83)

Question 105

Because of the problem of scarcity, each economic system must make which of the following choices?

(Multiple Choice)

4.8/5

(77)

Question 106

The ability of an economy to produce greater levels of output in the same period of time is called:

(Multiple Choice)

4.9/5

(65)

Question 107

The production possibilities curve shows different combinations of goods that:

(Multiple Choice)

4.9/5

(77)

Question 108

The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:

(Multiple Choice)

4.9/5

(94)

Question 109

The law of increasing costs holds that the opportunity cost:

(Multiple Choice)

4.8/5

(99)

Question 110

Which of the following statements is false?

(Multiple Choice)

4.7/5

(80)

Question 111

Exhibit 2-7 Production possibilities curve -For the economy shown in Exhibit 2-7 to operate at point C, it must:

(Multiple Choice)

4.9/5

(75)

Question 112

Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consume goods 200 180 140 80 0 -According to the data given in Exhibit 2-4, the production of 140 units of consumer goods and 10 units of capital goods:

(Multiple Choice)

4.8/5

(75)

Question 113

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

(Multiple Choice)

4.8/5

(79)

Question 114

Any point on the production possibilities curve illustrates:

(Multiple Choice)

4.9/5

(88)

Question 115

An efficient economy:

(Multiple Choice)

4.8/5

(78)

Question 116

A production possibilities curve shows the various combinations of two outputs that:

(Multiple Choice)

4.9/5

(82)

Question 117

Exhibit 2-10 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consumption goods 25 23 19 13 0 -Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must , because .

(Multiple Choice)

4.9/5

(75)

Question 118

Investment is an economic term for the act of increasing the stock of money available for business loans.

(True/False)

4.8/5

(77)

Question 119

Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, is necessary for economic growth.

(True/False)

4.9/5

(71)

Question 120

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, a total output of 14 units of consumer goods and 1 unit of capital goods is:

Any point inside the production possibility curve is:

The opportunity cost of an activity means the:

Each and every point along a production possibilities curve represents an efficient output option for an economy.

A nation can accelerate economic growth by increasing its production of consumer goods.

Because of the problem of scarcity, each economic system must make which of the following choices?

The ability of an economy to produce greater levels of output in the same period of time is called:

The production possibilities curve shows different combinations of goods that:

The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:

The law of increasing costs holds that the opportunity cost:

Which of the following statements is false?

Exhibit 2-7 Production possibilities curve -For the economy shown in Exhibit 2-7 to operate at point C, it must:

Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consume goods 200 180 140 80 0 -According to the data given in Exhibit 2-4, the production of 140 units of consumer goods and 10 units of capital goods:

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

Any point on the production possibilities curve illustrates:

An efficient economy:

A production possibilities curve shows the various combinations of two outputs that:

Investment is an economic term for the act of increasing the stock of money available for business loans.

Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, is necessary for economic growth.

Introducing the Economic Way of Thinking

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

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