Question 1

Exhibit 2-4  
-Refer to Exhibit 2-4.The opportunity cost of moving from point A to point B is

Accepted Answer

A) 60,000 copiers. 
B) 40,000 copiers. 
C) 20,000 copiers. 
D) 20,000 fax machines. 
E) 40,000 fax machines. 
A) 60,000 copiers. 
B) 40,000 copiers. 
C) 20,000 copiers. 
D) 20,000 fax machines. 
E) 40,000 fax machines.

Question 2

Exhibit 2-7  
-The economy can produce 15X and 15Y,10X and 20Y,5X and 25Y,or OX and 30Y.It follows that the production possibility frontier (PPF)is

Accepted Answer

A) a downward-sloping straight line. 
B) an upward-sloping straight line. 
C) a downward-sloping convex curve. 
D) a downward-sloping concave curve. 
A) a downward-sloping straight line. 
B) an upward-sloping straight line. 
C) a downward-sloping convex curve. 
D) a downward-sloping concave curve.

Question 3

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 ______________________.

Accepted Answer

A) decreases at low levels of X;a straight line 
B) rises at high levels of Y;bowed-outward 
C) decreases at high levels of X;bowed-outward 
D) is always the same;a straight line 
A) decreases at low levels of X;a straight line 
B) rises at high levels of Y;bowed-outward 
C) decreases at high levels of X;bowed-outward 
D) is always the same;a straight line

Question 4

Exhibit 2-6  
-Refer to Exhibit 2-6.Which graph depicts society's choice to produce more of good X and less of good Y?

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 5

Exhibit 2-5  
-Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:
Strategy
Score in Economics
Score in Statistics
A
94
79
B
77
90
The opportunity cost of receiving a 94 on the economics exam is __________ points on the statistics exam.

Accepted Answer

A) 79 
B) 17 
C) 11 
D) 90 
A) 79 
B) 17 
C) 11 
D) 90

Question 6

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 7

Exhibit 2-3  
-Refer to Exhibit 2-3.If PPF1 is the relevant production possibilities frontier,society can choose points that lie only

Accepted Answer

A) below PPF1. 
B) below or on PPF1. 
C) on PPF2. 
D) none of the above 
A) below PPF1. 
B) below or on PPF1. 
C) on PPF2. 
D) none of the above

Question 8

In the production possibilities framework,economic growth is depicted by the PPF

Accepted Answer

A) shifting leftward (toward the origin). 
B) shifting rightward (away from the origin). 
C) becoming a straight line rather than a bowed outward curve. 
D) becoming bowed outward rather than a straight line. 
A) shifting leftward (toward the origin). 
B) shifting rightward (away from the origin). 
C) becoming a straight line rather than a bowed outward curve. 
D) becoming bowed outward rather than a straight line.

Question 9

If an economy can produce a maximum of 100 units of good X and the opportunity cost of 1X is always 5Y,then what is the maximum number of units of good Y the economy can produce?

Accepted Answer

A) 250 
B) 100 
C) 20 
D) 500 
E) none of the above 
A) 250 
B) 100 
C) 20 
D) 500 
E) none of the above

Question 10

Exhibit 2-6  
-Refer to Exhibit 2-6.Which graph depicts a technological breakthrough in the production of good Y 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 11

An economy can produce either of these two combinations of goods X and Y: 1,000X and 0Y or 400Y and 0X.Furthermore,the opportunity cost between the two goods is always constant.Which of the following combinations of the two goods,X and Y,is it possible for the economy to produce?

Accepted Answer

A) 700 units of X and 280 units of Y 
B) 600 units of X and 250 units of Y 
C) 400 units of X and 150 units of Y 
D) 100 units of X and 600 units of Y 
E) 300 units of X and 280 units of Y 
A) 700 units of X and 280 units of Y 
B) 600 units of X and 250 units of Y 
C) 400 units of X and 150 units of Y 
D) 100 units of X and 600 units of Y 
E) 300 units of X and 280 units of Y

Question 12

Which of the following statements is true?

Accepted Answer

A) The concept of opportunity costs cannot be illustrated within a PPF framework. 
B) If scarcity did not exist,neither would a PPF. 
C) All PPFs are downward-sloping straight lines. 
D) There are more attainable points than unattainable points in every PPF diagram. 
A) The concept of opportunity costs cannot be illustrated within a PPF framework. 
B) If scarcity did not exist,neither would a PPF. 
C) All PPFs are downward-sloping straight lines. 
D) There are more attainable points than unattainable points in every PPF diagram.

Question 13

Exhibit 2-1  
-Refer to Exhibit 2-1.The PPF illustrates

Accepted Answer

A) constant opportunity costs between guns and butter. 
B) that guns are more important than butter. 
C) increasing opportunity costs between guns and butter. 
D) the opportunity cost of one unit of guns is four units of butter. 
E) none of the above 
A) constant opportunity costs between guns and butter. 
B) that guns are more important than butter. 
C) increasing opportunity costs between guns and butter. 
D) the opportunity cost of one unit of guns is four units of butter. 
E) none of the above

Question 14

An increase in the quantity of resources available

Accepted Answer

A) shifts the PPF leftward. 
B) shifts the PPF rightward. 
C) moves the economy to a new point up along a given PPF. 
D) moves the economy to a new point down along a given PPF. 
A) shifts the PPF leftward. 
B) shifts the PPF rightward. 
C) moves the economy to a new point up along a given PPF. 
D) moves the economy to a new point down along a given PPF.

Question 15

If there is an increase in the amount of good B foregone as every additional unit of good A is produced,the PPF between goods A and B would

Accepted Answer

A) be a straight line. 
B) be a bowed-outward curve. 
C) be a bowed-inward curve. 
D) not exist. 
A) be a straight line. 
B) be a bowed-outward curve. 
C) be a bowed-inward curve. 
D) not exist.

Question 16

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 17

Points that lie outside (or beyond)the PPF are

Accepted Answer

A) attainable. 
B) unattainable. 
C) efficient. 
D) inefficient. 
A) attainable. 
B) unattainable. 
C) efficient. 
D) inefficient.

Question 18

Exhibit 2-6  
-Refer to Exhibit 2-6.Which graph depicts a discovery of a new cheap source of energy that assists in the production of both good X and good Y?

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 19

Exhibit 2-4  
-Refer to Exhibit 2-4.The line joining points A and D is called the

Accepted Answer

A) production function frontier. 
B) utility function. 
C) production possibilities frontier. 
D) demand curve. 
A) production function frontier. 
B) utility function. 
C) production possibilities frontier. 
D) demand curve.

Question 20

A decrease in the quantity of resources

Accepted Answer

A) shifts the PPF leftward. 
B) shifts the PPF rightward. 
C) moves the economy up a given PPF. 
D) moves the economy down a given PPF. 
A) shifts the PPF leftward. 
B) shifts the PPF rightward. 
C) moves the economy up a given PPF. 
D) moves the economy down a given PPF.

Exam 2: Production Possibilities Frontier Framework

Exhibit 2-4 -Refer to Exhibit 2-4.The opportunity cost of moving from point A to point B is

Exhibit 2-7 -The economy can produce 15X and 15Y,10X and 20Y,5X and 25Y,or OX and 30Y.It follows that the production possibility frontier (PPF)is

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 ______________________.

Exhibit 2-6 -Refer to Exhibit 2-6.Which graph depicts society's choice to produce more of good X and less of good Y?

Exhibit 2-5 -Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: Strategy Score in Economics Score in Statistics A 94 79 B 77 90 The opportunity cost of receiving a 94 on the economics exam is __________ points on the statistics exam.

The point where the PPF intersects the vertical axis is

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF1 is the relevant production possibilities frontier,society can choose points that lie only

In the production possibilities framework,economic growth is depicted by the PPF

If an economy can produce a maximum of 100 units of good X and the opportunity cost of 1X is always 5Y,then what is the maximum number of units of good Y the economy can produce?

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

An economy can produce either of these two combinations of goods X and Y: 1,000X and 0Y or 400Y and 0X.Furthermore,the opportunity cost between the two goods is always constant.Which of the following combinations of the two goods,X and Y,is it possible for the economy to produce?

Which of the following statements is true?

Exhibit 2-1 -Refer to Exhibit 2-1.The PPF illustrates

An increase in the quantity of resources available

If there is an increase in the amount of good B foregone as every additional unit of good A is produced,the PPF between goods A and B would

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

Points that lie outside (or beyond)the PPF are

Exhibit 2-6 -Refer to Exhibit 2-6.Which graph depicts a discovery of a new cheap source of energy that assists in the production of both good X and good Y?

Exhibit 2-4 -Refer to Exhibit 2-4.The line joining points A and D is called the

A decrease in the quantity of resources

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

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

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

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Filters

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 __.

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF₁ is the relevant production possibilities frontier,society can choose points that lie only