Question 1

-Refer to Exhibit 2-2.The production possibilities frontiers shown in this exhibit depict _______________ opportunity costs.

Accepted Answer

A)  constant 
B)  increasing 
C)  decreasing 
D)  There is not enough information provided to answer this question. 
A)  constant 
B)  increasing 
C)  decreasing 
D)  There is not enough information provided to answer this question.

Question 2

Opportunity cost is illustrated by a movement from one point to another on the production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 3

The economy moves from point A,where it produces 100 units of X and 200 units of Y,to point B,where it produces 200 units of X and 150 units of Y.It follows that

Accepted Answer

A)  point A is a productive inefficient point. 
B)  point A may be a productive inefficient point. 
C)  point A may be a productive efficient point. 
D)  point B is a productive efficient point. 
E)  b and c 
A)  point A is a productive inefficient point. 
B)  point A may be a productive inefficient point. 
C)  point A may be a productive efficient point. 
D)  point B is a productive efficient point. 
E)  b and c

Question 4

-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 5

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

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

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

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  J 
E)  a,b,or c 
A)  A 
B)  B 
C)  C 
D)  J 
E)  a,b,or c

Question 7

Which of the following is not true about production possibilities frontiers?

Accepted Answer

A)  moving from one point to another on a PPF incurs a tradeoff 
B)  economic growth is shown by shifting the PPF outward 
C)  unemployment of resources is shown by shifting the PPF inward 
D)  a PPF can shift inward or outward 
A)  moving from one point to another on a PPF incurs a tradeoff 
B)  economic growth is shown by shifting the PPF outward 
C)  unemployment of resources is shown by shifting the PPF inward 
D)  a PPF can shift inward or outward

Question 8

Keisha can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.The opportunity cost of one unit of Y for Keisha is

Accepted Answer

A)  5 units of X. 
B)  0.2 units of X. 
C)  3 units of X. 
D)  1/2 unit of X. 
E)  none of the above 
A)  5 units of X. 
B)  0.2 units of X. 
C)  3 units of X. 
D)  1/2 unit of X. 
E)  none of the above

Question 9

Explain what productive efficiency means.Describe how productive efficiency is represented by a PPF.

Accepted Answer

An economy is producing efficiently if i

Question 10

-Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,a significant loss of the quantity of resources available could

Accepted Answer

A)  move this society from point D to point G on PPF2 
B)  shift this society to PPF1 
C)  shift this society to PPF3 
D)  not affect this society. 
A)  move this society from point D to point G on PPF2 
B)  shift this society to PPF1 
C)  shift this society to PPF3 
D)  not affect this society.

Question 11

Consider the following combinations of guns and butter that can be produced: 0 guns,20,000 units of butter; 5,000 guns,15,000 units of butter; 10,000 guns,10,000 units of butter; 15,000 guns,5,000 units of butter; 20,000 guns,0 units of butter.The PPF between guns and butter is

Accepted Answer

A)  a downward-sloping bowed-out curve. 
B)  a downward-sloping straight line. 
C)  an upward-sloping straight line. 
D)  It is impossible to answer this question without knowing which good would be plotted on the vertical axis. 
A)  a downward-sloping bowed-out curve. 
B)  a downward-sloping straight line. 
C)  an upward-sloping straight line. 
D)  It is impossible to answer this question without knowing which good would be plotted on the vertical axis.

Question 12

Assume that two products are being produced: benches and chairs.Create a table that illustrates constant opportunity costs in the production of these two goods.Draw a production possibilities frontier (PPF)based on the data in your table and explain the condition necessary for a PPF to exhibit constant opportunity costs.

Accepted Answer

The following table illustrates constant

Question 13

-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

-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

Question 15

Exhibit 2-10
​   ​  
-Refer Exhibit 2-10.Which of the following statements is true?

Accepted Answer

A)  There would be no gains from trade between person A and person B because the opportunity cost of producing one unit of good X (or one unit of good Y)is the same for both persons. 
B)  Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good X and person B specializes in the production of good Y. 
C)  Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good Y and person B specializes in the production of good X. 
D)  Both person A and person B will benefit from trade as long as person A produces both good X and good Y,and person B produces neither good. 
E)  Both person A and person B will benefit from trade as long as person B produces both good X and good Y,and person A produces neither good. 
A)  There would be no gains from trade between person A and person B because the opportunity cost of producing one unit of good X (or one unit of good Y)is the same for both persons. 
B)  Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good X and person B specializes in the production of good Y. 
C)  Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good Y and person B specializes in the production of good X. 
D)  Both person A and person B will benefit from trade as long as person A produces both good X and good Y,and person B produces neither good. 
E)  Both person A and person B will benefit from trade as long as person B produces both good X and good Y,and person A produces neither good.

Question 16

Give a definition of an advance in technology.Suppose that you are drawing a PPF for civilian goods and military goods,describe the effect on the PPF of an advance in technology in both civilian goods and military goods.How would the impact on the PPF be different if the technological improvement only helped in the production of military goods,but not civilian goods?

Accepted Answer

An advance in technology commonly refers

Question 17

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

Accepted Answer

A)  35 
B)  55 
C)  zero 
D)  40 
A)  35 
B)  55 
C)  zero 
D)  40

Question 18

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

Accepted Answer

A)  15,000 televisions. 
B)  15,000 fax machines. 
C)  10,000 televisions. 
D)  20,000 fax machines. 
A)  15,000 televisions. 
B)  15,000 fax machines. 
C)  10,000 televisions. 
D)  20,000 fax machines.

Question 19

Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis)?

Accepted Answer

A)  There are no implications because the PPF deals only with resources in use. 
B)  The PPF cannot be drawn if some resources are idle. 
C)  With unemployed resources,we are at a point below (inside)the PPF. 
D)  The PPF would be upward sloping. 
A)  There are no implications because the PPF deals only with resources in use. 
B)  The PPF cannot be drawn if some resources are idle. 
C)  With unemployed resources,we are at a point below (inside)the PPF. 
D)  The PPF would be upward sloping.

Question 20

A production possibilities frontier separates an attainable region from an unattainable region.

Accepted Answer

A) True 
 B)False

Exam 2: Production Possibilities Frontier Framework

-Refer to Exhibit 2-2.The production possibilities frontiers shown in this exhibit depict _______________ opportunity costs.

Opportunity cost is illustrated by a movement from one point to another on the production possibilities frontier.

The economy moves from point A,where it produces 100 units of X and 200 units of Y,to point B,where it produces 200 units of X and 150 units of Y.It follows that

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

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

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

Which of the following is not true about production possibilities frontiers?

Keisha can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.The opportunity cost of one unit of Y for Keisha is

Explain what productive efficiency means.Describe how productive efficiency is represented by a PPF.

-Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,a significant loss of the quantity of resources available could

Consider the following combinations of guns and butter that can be produced: 0 guns,20,000 units of butter; 5,000 guns,15,000 units of butter; 10,000 guns,10,000 units of butter; 15,000 guns,5,000 units of butter; 20,000 guns,0 units of butter.The PPF between guns and butter is

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

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

Exhibit 2-10 ​ ​ -Refer Exhibit 2-10.Which of the following statements is true?

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

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

Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis)?

A production possibilities frontier separates an attainable region from an unattainable region.

What Economics Is About

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility 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,union,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

Stocks,bonds,futures,and Options

Filters

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

-Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,a significant loss of the quantity of resources available could

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

Exhibit 2-10 -Refer Exhibit 2-10.Which of the following statements is true?