Question 1

The point where the PPF intersects the vertical 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. 
A) unattainable. 
B) attainable and productive efficient. 
C) attainable but productive inefficient. 
D) attainable and neither productive efficient nor productive inefficient.

Question 2

The PPF between goods X and Y will be a downward-sloping

Accepted Answer

A) straight line if increasing opportunity costs exist. 
B) straight line if decreasing opportunity costs exist. 
C) curve that is bowed outward if increasing opportunity costs exist. 
D) curve that is bowed outward if constant opportunity costs exist. 
A) straight line if increasing opportunity costs exist. 
B) straight line if decreasing opportunity costs exist. 
C) curve that is bowed outward if increasing opportunity costs exist. 
D) curve that is bowed outward if constant opportunity costs exist.

Question 3

Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is

Accepted Answer

A) 1 pear. 
B) 4 apples. 
C) 3 apples. 
D) 41 pears. 
A) 1 pear. 
B) 4 apples. 
C) 3 apples. 
D) 41 pears.

Question 4

Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.

Accepted Answer

A technological advancement in one secto

Question 5

Exhibit 2-8
  
-Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?

Accepted Answer

A) Maria 
B) Maya 
C) Both Maria and Maya 
D) Neither Maria nor Maya 
A) Maria 
B) Maya 
C) Both Maria and Maya 
D) Neither Maria nor Maya

Question 6

An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. The production possibilities frontier (PPF) for the economy is

Accepted Answer

A) concave downward because the opportunity cost of producing the 10th unit of Y is greater than the opportunity cost of producing the first unit of Y. 
B) a straight (downward-sloping) line because the opportunity cost of producing the two goods is constant. 
C) concave downward because the opportunity cost of producing the 40th unit of Y is less than the opportunity cost of producing the 10th unit of Y. 
D) a straight (downward-sloping) line because the opportunity cost of producing the 10th unit of X is greater than the opportunity cost of producing the 40th unit of X. 
E) a straight (downward-sloping) line because the opportunity cost of producing the 30th unit of Y is greater than the opportunity cost of producing the 30th unit of X. 
A) concave downward because the opportunity cost of producing the 10th unit of Y is greater than the opportunity cost of producing the first unit of Y. 
B) a straight (downward-sloping) line because the opportunity cost of producing the two goods is constant. 
C) concave downward because the opportunity cost of producing the 40th unit of Y is less than the opportunity cost of producing the 10th unit of Y. 
D) a straight (downward-sloping) line because the opportunity cost of producing the 10th unit of X is greater than the opportunity cost of producing the 40th unit of X. 
E) a straight (downward-sloping) line because the opportunity cost of producing the 30th unit of Y is greater than the opportunity cost of producing the 30th unit of X.

Question 7

Exhibit 2-3
  
-Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of

Accepted Answer

A) an increase in resources. 
B) a decrease in resources. 
C) an increase in technology. 
D) both a and c 
E) both b and c 
A) an increase in resources. 
B) a decrease in resources. 
C) an increase in technology. 
D) both a and c 
E) both b and c

Question 8

Exhibit 2-6
  
-Refer to Exhibit 2-6. Which graph depicts a technological breakthrough in the production of good X only?

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 9

Exhibit 2-6
  
-Refer to Exhibit 2-6. Which graph depicts the result of an increase in the number of immigrants entering the country in order to work?

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 10

Exhibit 2-9
  
-Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good B is ____________ unit(s) of good A.

Accepted Answer

A) 3.00 
B) 0.33 
C) 0.75 
D) 1.33 
A) 3.00 
B) 0.33 
C) 0.75 
D) 1.33

Question 11

A PPF can

Accepted Answer

A) shift outward but not inward. 
B) shift inward but not outward. 
C) shift inward or outward. 
D) shift neither inward nor outward. 
A) shift outward but not inward. 
B) shift inward but not outward. 
C) shift inward or outward. 
D) shift neither inward nor outward.

Question 12

When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 13

Exhibit 2-2
  
-Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ is unattainable.

Accepted Answer

A) A 
B) G 
C) D 
D) J 
A) A 
B) G 
C) D 
D) J

Question 14

The economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that opportunity cost of 1X is ___Y.

Accepted Answer

A) 5.0 
B) 0.5 
C) 2.5 
D) 1.0 
E) 2.0 
A) 5.0 
B) 0.5 
C) 2.5 
D) 1.0 
E) 2.0

Question 15

Exhibit 2-6
  
-Refer to Exhibit 2-6. Which graph depicts the result of an increase 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 16

Along its production possibilities frontier (PPF) an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that the PPF is

Accepted Answer

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

Question 17

Exhibit 2-5
  
-Refer to Exhibit 2-5. As more fax machines are produced, the opportunity cost of producing them

Accepted Answer

A) increases. 
B) decreases. 
C) remains constant. 
D) first decreases and then increases. 
A) increases. 
B) decreases. 
C) remains constant. 
D) first decreases and then increases.

Question 18

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 19

Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: 
 
The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam.

Accepted Answer

A) 12 
B) 11 
C) 15 
D) 81 
A) 12 
B) 11 
C) 15 
D) 81

Question 20

Exhibit 2-9
  
-Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good B is ____________ unit(s) of good A.

Accepted Answer

A) 3.00 
B) 0.33 
C) 0.75 
D) 1.33 
A) 3.00 
B) 0.33 
C) 0.75 
D) 1.33

Exam 2: Production Possibilities Frontier Framework

The point where the PPF intersects the vertical axis is

The PPF between goods X and Y will be a downward-sloping

Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is

Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.

Exhibit 2-8 -Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?

An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. The production possibilities frontier (PPF) for the economy is

Exhibit 2-3 -Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of

Exhibit 2-6 -Refer to Exhibit 2-6. Which graph depicts a technological breakthrough in the production of good X only?

Exhibit 2-6 -Refer to Exhibit 2-6. Which graph depicts the result of an increase in the number of immigrants entering the country in order to work?

Exhibit 2-9 -Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good B is ____________ unit(s) of good A.

A PPF can

When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier.

Exhibit 2-2 -Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ is unattainable.

The economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that opportunity cost of 1X is ___Y.

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

Along its production possibilities frontier (PPF) an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that the PPF is

Exhibit 2-5 -Refer to Exhibit 2-5. As more fax machines are produced, the opportunity cost of producing them

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

Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam.

Exhibit 2-9 -Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good B is ____________ unit(s) of good A.

What Economics Is About

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

Exhibit 2-3 -Refer to Exhibit 2-3. If PPF₁ is the relevant production possibilities frontier, society may move to PPF₂ as a result of

Exhibit 2-2 -Refer to Exhibit 2-2. If PPF₂ is the relevant production possibilities frontier, then point __________ is unattainable.