Exam 3: Production Possibilities and Opportunity Cost

The opportunity cost of good A has increased, as resources that are shifted from the production of good B to good A are less efficient in the production of good A.

Economic growth may be represented by a/an:

A nation's current location on its production possibilities curve cannot determine the future location of that nation's production possibilities curve.

Narrbegin Exhibit 2.3 Production possibilities curve data Capital goods 0 10 20 30 40 Consumer goods 200 180 140 80 0 Narrend -According to the data given in Exhibit 2.3, the production of 140 units of consumer goods and 30 units of capital goods:

Narrbegin Exhibit 2.10 Production possibilities frontier -From the information in Exhibit 2.10, which of the following points on the production possibilities curve are attainable with the resources and technology currently available?

Suppose a new method is discovered that allows the production of more grapes for the given level of inputs. Assume that this method cannot be used in car production. What will be the impact on the production possibilities curve? The production possibilities curve will:

Which fundamental economic question requires society to choose the technological and resource mix used to produce goods?

An increase in current consumption is necessary for economic growth.

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.

The economy experiences economic growth if:

Narrbegin Exhibit 2.2 Production possibilities frontier Narrend -In Exhibit 2.2, the opportunity cost of coffee when moving from A to B is:

Which of the following statements is false?

A production possibilities frontier shows the various:

Narrbegin Exhibit 2.7 Production possibilities frontier Narrend -Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?

In order to achieve economic growth, investment in capital accumulation is more important than investment in education and other labour productivity enhancing programs.

Which of the following arguments are made in support of immigration?

A point outside a production possibilities curve reflects:

Which of the following statements is true?

The opportunity cost to a city for using local tax revenues to construct a new park is the:

Marginal analysis is the effect of: