Exam 2: Production Possibilities Frontier Framework

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

The point where the PPF intersects the horizontal axis is

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

Productive efficiency implies that

Production possibilities curves can shift outward but they do not shift inward.

If there is always a three-for-one tradeoff between goods X and Y,then the PPF between X and Y is

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 a decrease in the unemployment rate?

Points that lie inside (or below)the PPF are

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

Exhibit 2-6 -Refer to Exhibit 2-6.Which graph best depicts the consequence of a large-scale natural disaster?

Which of the following is an illustration of the law of increasing opportunity costs?

Carlos can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.The opportunity cost of one unit of X for Carlos is

For each additional lamp produced,a constant opportunity cost is incurred in terms of bookshelves.This means

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

Why is the production possibilities frontier (PPF)typically bowed-outward? Under what circumstances would the PPF be a straight line?

Exhibit 2-5 -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)?

Which of the following statements is true?

It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier.

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