Exam 2: Production Possibilities Frontier Framework

If there is always a 4-for-1 tradeoff between producing good X and good Y,it follows that the opportunity cost of X (in terms of Y)____________________ and the PPF for these two goods is ______________________.

An increase in the quantity of resources available

Which of the following statements is true?

If resources are better suited toward the production of one good than toward another good,then the PPF for those two goods is

Productive efficiency implies that

-Refer to Exhibit 2-8.For Maria,the opportunity cost of producing one unit of good Y is ___________ unit(s)of good X.

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

If a production possibilities frontier (PPF)is concave outward,it follows that

-Refer to Exhibit 2-7.For which of the following is the statement "In order to get more civilian goods,we have to forfeit some military goods" true?

Points inside (below)the production possibilities frontier (PPF)are

The economy is currently on its production possibilities frontier (PPF).A politician says that it is possible to get more of everything---more infrastructure,more schools,more national defense,more spending on social programs,and so on.The politician is

The law of increasing opportunity cost helps to explain why PPF's are typically bowed-outward.

If the law of increasing opportunity costs is operable,and currently the opportunity cost of producing the 1,000th unit of good X is 0.5Y,then the opportunity cost of producing the 2,001st unit of good is X is most likely to be

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

A decrease in the quantity of resources available causes a movement from one point on a given PPF to another point along the same PPF.

-Refer to Exhibit 2-3.If PPF₁ is the relevant production possibilities frontier,society can only choose to produce at a point that lies

-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?

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

Which scenario below most accurately describes the process by which a technological change can affect employment patterns across industries?

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the vertical axis