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154.
The law of increasing opportunity costs is reflected in a production possibilities curve
that is
A.
an upsloping straight line.
155.
The point on the production possibilities curve that is most desirable can be found by
A. estimating the marginal costs of both products in real or physical terms.
156.
The optimal point on a production possibilities curve is achieved where
A. the smallest physical amounts of inputs are used to produce each good.
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157.
The marginal benefit curve is
A.
upsloping because of increasing marginal opportunity costs.
B.
upsloping because successive units of a specific product yield less and less extra benefit.
158.
The marginal cost curve is
D.
downsloping because successive units of a specific product yield less and less extra
utility.
159.
The output of digital music players should be
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A. reduced if marginal benefits exceed marginal costs.
160.
If the output of product X is such that marginal benefit equals marginal cost,
D.
resources are overallocated to the production of X.
161.
Refer to the diagram for athletic shoes. The optimal output of shoes is
D.
greater than Q3.
162.
Refer to the diagram for athletic shoes. If the current output of shoes is Q1, then
D.
resources are being allocated efficiently to the production of shoes.
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163.
Refer to the diagram for athletic shoes. If the current output of shoes is Q3, then
A.
resources are being allocated efficiently to the production of shoes.
B.
society would consider additional units of shoes to be more valuable than alternative
products.
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164.
Refer to the diagram for athletic shoes. If the current output of shoes is Q3, then
D.
shoes are more valuable to society than alternative products
165.
Suppose that a fully employed economy produces only two goods, hamburgers and
flat-panel TVs. If the economy is currently producing more than the optimal quantity
of
hamburgers, then to attain the optimal allocation of resources, it should
A. produce more hamburgers and fewer TVs.
166.
Suppose that an economy is producing on its production possibilities curve but is not
producing quantities of each good where the marginal benefit equals the marginal
cost
for each good. This economy
A.
should not change its production, because it cannot improve its allocation by shifting
resources.
D.
where the marginal cost is at its lowest.
168.
Refer to the diagram. Technological advance in producing both capital goods and
consumer goods is shown by the shift of the production possibilities curve from AB
to
D.
GH.
169.
Refer to the diagram. Technological advance that improves the ability to produce capital
goods but not consumer goods is shown by the shift of the production
possibilities curve
from AB to
A. CD.
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170.
Refer to the diagram. Technological advance that is useful in producing consumer goods
but not in producing capital goods is shown by the shift of the production
possibilities
curve from AB to
171.
The basic difference between consumer goods and capital goods is that
A.
consumer goods are produced in the private sector and capital goods are produced in the
public sector.
172.
Which of the following will shift the production possibilities curve to the right?
A.
an increase in the unemployment rate from 6 to 8 percent
173.
Other things equal, which of the following would shift an economy’s production
possibilities curve to the left?
A.
the discovery of a low-cost means of generating and storing solar energy
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174.
Refer to the diagram. The concave shape of each production possibilities curve indicates that
A.
resources are perfectly substitutable.
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175.
Refer to the diagram. The concept of opportunity cost is best represented by the
A.
shift of the production possibilities curve from PP1 to PP2.
176.
Refer to the diagram. Other things equal, which of the following positions relative to PP1
would be the most likely to result in a future production possibilities curve of
PP3 rather than PP2?
D.
D
177.
Refer to the diagram. An improvement in technology will
D.
move the economy from A, B, or C on PP1 to D.
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178.
Refer to the diagram. Which one of the following would shift the production possibilities
curve from PP1 to PP2?
A. an outbreak of the Zika virus leading to an epidemic
179.
Which of the following statements, if any, is correct for a nation that is producing only
consumer and capital goods?
and capital goods and the future growth rate.
D.
None of these statements are correct.
180.
All of the following could immediately or eventually lead to an inward shift of a
nation‘s production possibilities curve, except
A.
emigration of skilled workers to other nations.
B.
a decline in the birthrate.
181.
A nation‘s production possibilities curve might shift to the left (inward) as a result of
A.
technological advance.
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Topic:
Unemployment, Growth, and the Future
182.
Which of the following will enable a nation to obtain a combination of consumer goods
and capital goods outside its production possibilities curve?
D.
productive efficiency
183.
Suppose that Scoobania, which has full employment, can obtain 1 unit of capital
goods by sacrificing 2 units of consumer goods domestically but can obtain 1 unit of
capital goods from another country by trading 1 unit of consumer goods for it. This
reality illustrates
A.
a rightward (outward) shift of the production possibilities curve.
B.
increasing opportunity costs.
184.
Through specialization and international trade, a nation
C.
will only attain some combination of goods lying within its production possibilities curve.
D.
will cause its production possibilities curve to shift leftward.
185.
Some agricultural sub-Saharan nations of Africa have overfarmed and overgrazed
their land to the extent that significant portions of it have turned into desert. This
suggests that
A. the production possibilities curves of such nations are more bowed out from the origin.
186.
If all discrimination in the United States were eliminated, the economy would
A. have a less concave production possibilities curve.