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

Exhibit 2-7 Production possibilities curve -For the economy shown in Exhibit 2-7,which of the following is true when the economy is at point A?

Any point inside the production possibility curve is:

If some resources went to waste rather to use in production,the economy would operate outside its production possibility curve.

Exhibit 2-9 Production possibilities curve -Movement along this production possibilities curve shown in Exhibit 2-9 indicates:

Of all the points on the production possibilities curve,only one point represents an efficient point.

If some resources were used inefficiently,the economy would operate outside its production possibilities curve.

Assuming an economy is already experiencing full employment,then it must produce more consumer goods and fewer capital goods if it wishes to experience greater rates of economic growth over time.

Production possibilities curve analysis includes the idea of:

What can a nation do to increase its economic growth? Why is economic growth among the major national economic goals of all countries?

When the opportunity cost of producing carrots increases as more carrots are produced,then:

Adding more resources causes:

A farmer is deciding whether or not to add fertilizer to his or her crops.If the farmer adds 1 pound of fertilizer per acre,the value of the resulting crops rises from $80 to $100 per acre.According to marginal analysis,the farmer should add fertilizer if it costs less than:

Efficient production means producing:

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 2-8 Production possibilities curve data -As shown in Exhibit 2-8,a total output of 0 units of capital goods and 10 units of consumer goods is:

Which of the following causes the production possibilities curve to shift to the right?

Exhibit 2-8 Production possibilities curve data -As shown in Exhibit 2-8,a total output of 14 units of consumer goods and 1 unit of capital goods is:

Which of the following most accurately indicates the implications of an economy's production possibilities curve?

The opportunity cost of an activity means the:

Exhibit 2-15 Production possibilities curve -In Exhibit 2-15,what can we conclude about point Q?