Question 1

Which of the following statements is true?

Accepted Answer

A)  Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available.
B)  Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.
C)  Productive inefficiency implies that it is impossible to produce more of one good and no less of another.
D)  Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.E) None of the above
F) B) and C)

Question 2

Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:
 The opportunity cost of receiving a 92 on the statistics exam is __________ points on the economics exam.

Accepted Answer

A)  12
B)  11
C)  16
D)  77E) None of the above
F) B) and D)

Question 3

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?

Accepted Answer

A)  a movement from A to C
B)  a movement from B to D
C)  a movement from F to D
D)  a movement from B to AE) None of the above
F) A) and C)

Question 4

Exhibit 2-7 1. B) efficient if the economy's PPF is PPF2. C) unattainable if the economy's PPF is PPF2. D) efficient if the economy's PPF is PPF1." class="answers-bank-image d-inline" rel="preload" >
Refer to Exhibit 2-7. Point F is

Accepted Answer

A)  unattainable if the economy's PPF is PPF1.
B)  efficient if the economy's PPF is PPF2.
C)  unattainable if the economy's PPF is PPF2.
D)  efficient if the economy's PPF is PPF1.E) B) and C)
F) A) and D)

Question 5

Exhibit 2-5 
Refer to Exhibit 2-5. The opportunity cost of moving from point A to point B is approximately

Accepted Answer

A)  5,000 televisions.
B)  5,000 fax machines.
C)  10,000 televisions.
D)  10,000 fax machines.E) A) and B)
F) A) and D)

Question 6

The PPF between goods X and Y will be a downward-sloping

Accepted Answer

A)  straight line if increasing opportunity costs exist.
B)  straight line if decreasing opportunity costs exist.
C)  curve that is bowed inward if increasing opportunity costs exist.
D)  straight line if constant opportunity costs exist.E) A) and B)
F) A) and C)

Question 7

Exhibit 2-1 
Refer to Exhibit 2-1. Scarcity exists

Accepted Answer

A)  at point C but not at point A.
B)  neither at point C nor at point A.
C)  at both point C and at point A.
D)  at point A but not at point C.E) A) and D)
F) A) and B)

Question 8

Productive efficiency implies

Accepted Answer

A)  the possibility of gains in one area without losses in another.
B)  that more output has been produced.
C)  the impossibility of gains in one area without losses in another.
D)  that prices are stable.E) A) and B)
F) A) and C)

Question 9

What is the reason for the law of increasing opportunity costs?

Accepted Answer

A)  There is no reason: it is just one of the laws of economics.
B)  Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it.
C)  The price of a good rises as more of it is demanded.
D)  As more of a good is produced, the taxes applied to the production of the good rise.E) B) and C)
F) None of the above

Question 10

Production possibilities frontiers (PPFs)can shift outward, but they do not shift inward.

Accepted Answer

A) True 
 B)False

Question 11

If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 101st unit of good X is 5Y, then the opportunity cost of producing the 201st unit of good is X is

Accepted Answer

A)  less than 5Y.
B)  greater than 1\5Y but less than 5Y.
C)  greater than 5Y.
D)  less than 1\5Y but more than zero.E) B) and C)
F) A) and D)

Question 12

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

Accepted Answer

A)  point A must be a productive efficient point.
B)  point A must be a productive inefficient point.
C)  point A may be a productive efficient point.
D)  point B must be a productive efficient point.E) None of the above
F) B) and C)

Question 13

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

Accepted Answer

A)  1 unit of Y.
B)  2 units of Y.
C)  1\2 unit of Y.
D)  1\4 unit of Y.E) A) and C)
F) C) and D)

Question 14

If the economy  is currently producing at a point on its production possibilities frontier (PPF) , the economy is

Accepted Answer

A)  productive inefficient.
B)  operating with some unemployed resources.
C)  productive efficient.
D)  currently producing at a point that is unattainable.E) A) and D)
F) None of the above

Question 15

Which of the following statements is false ?

Accepted Answer

A)  If there are only two goods, guns and butter, it is possible to produce more of both goods through economic growth.
B)  If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive inefficient point.
C)  If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive efficient point.
D)  If there are only two goods, guns and butter, producing more of one means producing less of the other if the economy is currently operating at a productive efficient point.E) A) and C)
F) A) and D)

Question 16

Exhibit 2-2 2 is the relevant production possibilities frontier, a significant loss of the quantity of resources available could A) move this society from point D to point G on PPF   . B) shift this society to PPF   . C) shift this society to PPF   . D) not affect this society." class="answers-bank-image d-inline" rel="preload" >
Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, a significant loss of the quantity of resources available could

Accepted Answer

A)  move this society from point D to point G on PPF 2 is the relevant production possibilities frontier, a significant loss of the quantity of resources available could 
A)  move this society from point D to point G on PPF   . 
B)  shift this society to PPF   . 
C)  shift this society to PPF   . 
D)  not affect this society." class="answers-bank-image d-inline" rel="preload" > .
B)  shift this society to PPF 2 is the relevant production possibilities frontier, a significant loss of the quantity of resources available could 
A)  move this society from point D to point G on PPF   . 
B)  shift this society to PPF   . 
C)  shift this society to PPF   . 
D)  not affect this society." class="answers-bank-image d-inline" rel="preload" > .
C)  shift this society to PPF 2 is the relevant production possibilities frontier, a significant loss of the quantity of resources available could 
A)  move this society from point D to point G on PPF   . 
B)  shift this society to PPF   . 
C)  shift this society to PPF   . 
D)  not affect this society." class="answers-bank-image d-inline" rel="preload" > .
D)  not affect this society.E) A) and C)
F) A) and D)

Question 17

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.

Accepted Answer

A) True 
 B)False

Exam 2: Production Possibilities Frontier Framework

Production possibilities frontiers (PPFs)can shift outward, but they do not shift inward.

Correct Answer
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If the economy is currently producing at a point on its production possibilities frontier (PPF) , the economy is

Correct Answer
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Which of the following statements is false ?

Correct Answer
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Exhibit 2-7 Refer to Exhibit 2-7. Point F is

Correct Answer
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If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 101st unit of good X is 5Y, then the opportunity cost of producing the 201st unit of good is X is

Correct Answer
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Productive efficiency implies

Correct Answer
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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?

Correct Answer
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Exhibit 2-2 Refer to Exhibit 2-2. If PPF₂ is the relevant production possibilities frontier, a significant loss of the quantity of resources available could

Correct Answer
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Exhibit 2-5 Refer to Exhibit 2-5. The opportunity cost of moving from point A to point B is approximately

Correct Answer
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Which of the following statements is true?

Correct Answer
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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

Correct Answer
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The PPF between goods X and Y will be a downward-sloping

Correct Answer
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What is the reason for the law of increasing opportunity costs?

Correct Answer
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Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: The opportunity cost of receiving a 92 on the statistics exam is __________ points on the economics exam.

Correct Answer
verified

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.

Correct Answer
verified

Exhibit 2-1 Refer to Exhibit 2-1. Scarcity exists

Correct Answer
verified

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

Correct Answer
verified

Exam 2: Production Possibilities Frontier Framework

Production possibilities frontiers (PPFs)can shift outward, but they do not shift inward.

Correct AnswerverifiedShow Answer

If the economy is currently producing at a point on its production possibilities frontier (PPF) , the economy is

Correct AnswerverifiedShow Answer

Which of the following statements is false ?

Correct AnswerverifiedShow Answer

Exhibit 2-7 Refer to Exhibit 2-7. Point F is

Correct AnswerverifiedShow Answer

If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 101st unit of good X is 5Y, then the opportunity cost of producing the 201st unit of good is X is

Correct AnswerverifiedShow Answer

Productive efficiency implies

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Exhibit 2-2 Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, a significant loss of the quantity of resources available could

Correct AnswerverifiedShow Answer

Exhibit 2-5 Refer to Exhibit 2-5. The opportunity cost of moving from point A to point B is approximately

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The PPF between goods X and Y will be a downward-sloping

Correct AnswerverifiedShow Answer

What is the reason for the law of increasing opportunity costs?

Correct AnswerverifiedShow Answer

Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: The opportunity cost of receiving a 92 on the statistics exam is __________ points on the economics exam.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Exhibit 2-1 Refer to Exhibit 2-1. Scarcity exists

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Exhibit 2-2 Refer to Exhibit 2-2. If PPF₂ is the relevant production possibilities frontier, a significant loss of the quantity of resources available could

Correct Answer
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