Question 1

As we move along the production possibilities frontier,

Accepted Answer

A) the production of one good increases as the production of the other good decreases. 
B) the possibilities of tradeoffs diminish. 
C) a tradeoff is not possible because nations need all goods. 
D) more of both goods can be produced. 
E) less of both goods can be produced. 
A) the production of one good increases as the production of the other good decreases. 
B) the possibilities of tradeoffs diminish. 
C) a tradeoff is not possible because nations need all goods. 
D) more of both goods can be produced. 
E) less of both goods can be produced.

Question 2

If a nation devotes a larger share of its current production to consumption goods,then

Accepted Answer

A) its economic growth will slow down. 
B) its PPF will shift outward. 
C) its PPF will shift inward. 
D) some productive factors will become unemployed. 
E) it must produce at a point within its PPF. 
A) its economic growth will slow down. 
B) its PPF will shift outward. 
C) its PPF will shift inward. 
D) some productive factors will become unemployed. 
E) it must produce at a point within its PPF.

Question 3

A movement from one point on a production possibilities frontier to another represents

Accepted Answer

A) a tradeoff. 
B) a free lunch. 
C) full employment of labor but not capital. 
D) unemployment. 
E) an advance in technology. 
A) a tradeoff. 
B) a free lunch. 
C) full employment of labor but not capital. 
D) unemployment. 
E) an advance in technology.

Question 4

The production possibilities frontier is the

Accepted Answer

A) maximum output that can be produced at an opportunity cost of zero. 
B) minimum output that can be produced when resources are used inefficiently. 
C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced,given the available factors of production and the state of technology. 
D) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing. 
E) maximum opportunity cost combinations of goods and services. 
A) maximum output that can be produced at an opportunity cost of zero. 
B) minimum output that can be produced when resources are used inefficiently. 
C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced,given the available factors of production and the state of technology. 
D) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing. 
E) maximum opportunity cost combinations of goods and services.

Question 5

-The figure above shows a nation's production possibilities frontier for apples and oranges.
a.What combination of goods is represented by point A?
b.What combination of goods is represented by point B?
c.Which point represents an unattainable combination of goods?
d.The movement from point C to point D results in a free lunch.What is the free lunch?

Accepted Answer

a.3 million bushels of apples and 3 mill

Question 6

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from ________ is greater for ________.

Accepted Answer

A) point A to point B;Anaconda 
B) point B to point A;Bear 
C) point D to point E;Bear 
D) point E to point D;Bear 
E) any point to any other point;Bear 
A) point A to point B;Anaconda 
B) point B to point A;Bear 
C) point D to point E;Bear 
D) point E to point D;Bear 
E) any point to any other point;Bear

Question 7

-The figure above shows a nation's production possibilities frontier.In the figure,point B shows

Accepted Answer

A) an unattainable point. 
B) an attainable point. 
C) a point with a free lunch. 
D) a point with no trade off. 
E) a point at which there are unemployed resources. 
A) an unattainable point. 
B) an attainable point. 
C) a point with a free lunch. 
D) a point with no trade off. 
E) a point at which there are unemployed resources.

Question 8

The production possibilities frontier is a boundary that separates

Accepted Answer

A) the combinations of goods that can be produced from the combinations of services. 
B) attainable combinations of goods and services that can be produced from unattainable ones. 
C) equitable combinations of goods and services that can be produced from inequitable ones. 
D) fair combinations of goods and services that can be consumed from unfair ones. 
E) affordable production points from unaffordable points. 
A) the combinations of goods that can be produced from the combinations of services. 
B) attainable combinations of goods and services that can be produced from unattainable ones. 
C) equitable combinations of goods and services that can be produced from inequitable ones. 
D) fair combinations of goods and services that can be consumed from unfair ones. 
E) affordable production points from unaffordable points.

Question 9

Comparative advantage is directly related to which of the following concepts?

Accepted Answer

A) productivity 
B) efficiency 
C) opportunity cost 
D) competition 
E) fairness 
A) productivity 
B) efficiency 
C) opportunity cost 
D) competition 
E) fairness

Question 10

Which of the following best describes comparative advantage?

Accepted Answer

A) being able to produce more output than any other country 
B) using the fewest number of resources to produce a given amount of output 
C) having the largest number of resources compared to other countries 
D) forgoing the fewest units of one product to produce a unit of another product 
E) It is the same as absolute advantage. 
A) being able to produce more output than any other country 
B) using the fewest number of resources to produce a given amount of output 
C) having the largest number of resources compared to other countries 
D) forgoing the fewest units of one product to produce a unit of another product 
E) It is the same as absolute advantage.

Question 11

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

Accepted Answer

A) 4 gallons of ice cream for a gallon of milk. 
B) 3 gallons of ice cream for a gallon of milk. 
C) 1 gallon of ice cream for a gallon of milk. 
D) 1/3 of a gallon of ice cream for a gallon of milk. 
E) zero because after producing another million gallons of milk then zero gallons of ice cream are produced. 
A) 4 gallons of ice cream for a gallon of milk. 
B) 3 gallons of ice cream for a gallon of milk. 
C) 1 gallon of ice cream for a gallon of milk. 
D) 1/3 of a gallon of ice cream for a gallon of milk. 
E) zero because after producing another million gallons of milk then zero gallons of ice cream are produced.

Question 12

The United States produced approximately ________ worth of goods and services in 2011.

Accepted Answer

A) $15 trillion 
B) $15 billion 
C) $150 trillion 
D) $150 billion 
E) $1,500 trillion 
A) $15 trillion 
B) $15 billion 
C) $150 trillion 
D) $150 billion 
E) $1,500 trillion

Question 13

If Country A can produce an extra plane by giving up two boats,and Country B can produce an extra plane by giving up three boats,then

Accepted Answer

A) Country A has a comparative advantage over Country B in the production of planes. 
B) Country B has a comparative advantage over Country A in the production of planes. 
C) the two countries have no incentive to trade with one another. 
D) Country A would like to trade with B,but B cannot gain by trading with A. 
E) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats. 
A) Country A has a comparative advantage over Country B in the production of planes. 
B) Country B has a comparative advantage over Country A in the production of planes. 
C) the two countries have no incentive to trade with one another. 
D) Country A would like to trade with B,but B cannot gain by trading with A. 
E) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats.

Question 14

The production possibilities frontier illustrates the

Accepted Answer

A) maximum combinations of goods and services that can be produced. 
B) resources the economy possess,but not its level of technology. 
C) goods and services that people want. 
D) limits to people's wants. 
E) amount of each good that people want to buy. 
A) maximum combinations of goods and services that can be produced. 
B) resources the economy possess,but not its level of technology. 
C) goods and services that people want. 
D) limits to people's wants. 
E) amount of each good that people want to buy.

Question 15

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

Accepted Answer

A) 12 tons of rice 
B) 15 thousand bottles of wine 
C) 9 thousand bottles of wine 
D) 3 tons of rice 
E) Nothing,it is a free lunch. 
A) 12 tons of rice 
B) 15 thousand bottles of wine 
C) 9 thousand bottles of wine 
D) 3 tons of rice 
E) Nothing,it is a free lunch.

Question 16

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

Accepted Answer

A) 3 trucks. 
B) 6 automobiles - 3 trucks. 
C) 2 trucks. 
D) 1/2 of a truck. 
E) 1 automobile. 
A) 3 trucks. 
B) 6 automobiles - 3 trucks. 
C) 2 trucks. 
D) 1/2 of a truck. 
E) 1 automobile.

Question 17

How is economic growth shown in a production possibilities frontier graph?

Accepted Answer

Economic growth is i

Question 18

Explain why specialization and trade increases a country's overall level of consumption.

Accepted Answer

A country specializes in the activities

Question 19

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

Accepted Answer

A) 0.25 cell phones 
B) 0.5 cell phones 
C) 1 cell phone 
D) 4 cell phones 
E) zero 
A) 0.25 cell phones 
B) 0.5 cell phones 
C) 1 cell phone 
D) 4 cell phones 
E) zero

Question 20

Are all points inside the production possibilities frontier unattainable?

Accepted Answer

No,all points within the produ

As we move along the production possibilities frontier,

If a nation devotes a larger share of its current production to consumption goods,then

A movement from one point on a production possibilities frontier to another represents

The production possibilities frontier is the

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from is greater for .

-The figure above shows a nation's production possibilities frontier.In the figure,point B shows

The production possibilities frontier is a boundary that separates

Comparative advantage is directly related to which of the following concepts?

Which of the following best describes comparative advantage?

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

The United States produced approximately ________ worth of goods and services in 2011.

If Country A can produce an extra plane by giving up two boats,and Country B can produce an extra plane by giving up three boats,then

The production possibilities frontier illustrates the

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

How is economic growth shown in a production possibilities frontier graph?

Explain why specialization and trade increases a country's overall level of consumption.

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

Are all points inside the production possibilities frontier unattainable?

Getting Started

The Usand Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 3: The Economic Problem

As we move along the production possibilities frontier,

If a nation devotes a larger share of its current production to consumption goods,then

A movement from one point on a production possibilities frontier to another represents

The production possibilities frontier is the

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from ________ is greater for ________.

-The figure above shows a nation's production possibilities frontier.In the figure,point B shows

The production possibilities frontier is a boundary that separates

Comparative advantage is directly related to which of the following concepts?

Which of the following best describes comparative advantage?

-The figure above shows the production possibilities frontier for a country.If the economy is operating at point B,then the opportunity cost of another million gallons of milk is

The United States produced approximately ________ worth of goods and services in 2011.

If Country A can produce an extra plane by giving up two boats,and Country B can produce an extra plane by giving up three boats,then

The production possibilities frontier illustrates the

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

Moving between two points on a PPF,a country gains 6 automobiles and forgoes 3 trucks.The opportunity cost of 1 automobile is

How is economic growth shown in a production possibilities frontier graph?

Explain why specialization and trade increases a country's overall level of consumption.

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point E to point D,what is the opportunity cost of a DVD?

Are all points inside the production possibilities frontier unattainable?

Getting Started

The Usand Global Economies

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.The opportunity cost of moving from is greater for .