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Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
110. Refer to the above diagram. This economy will experience unemployment if it produces
at point:
111. Which of the following is assumed in constructing a typical production possibilities
curve?
112. The typical production possibilities curve is:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
1-42
113. The slope of the typical production possibilities curve:
114. Assume an economy is incurring unemployment. The effect of resolving this problem
will be to:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
115. Refer to the above tables. Suppose that the amount and quality of resources are the same
in both countries. We can conclude that:
116. Refer to the above tables. Suppose that technology and the quality of resources are the
same in both countries. We can conclude that:
117. Refer to the above tables. Opportunity costs of producing military goods are:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
118. Refer to the above tables. Opportunity costs are:
119. Refer to the above tables. Suppose that Duckistan and Herbania are each producing 14
units of civilian goods and 2 unit of military goods. Then:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
120.
In the figure above are two linear production possibilities curves for countries Alpha and
Beta. We can conclude that:
121. Which of the following is not correct? A typical production possibilities curve:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
122. Refer to the above diagram. This production possibilities curve is constructed so that:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
123. Refer to the above diagram. Which of the following is a normative statement?
124. Refer to the above diagram. Which of the following is a positive statement?
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
125. Refer to the above diagram. Starting at point A, the opportunity cost of producing each
successive unit of tractors is:
126. Refer to the above diagram. Starting at point E, the production of successive units of
bread will cost:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
127. Refer to the above production possibilities curve. At the onset of the Second World War
the United States had large amounts of idle human and property resources. Its economic
adjustment from peacetime to wartime can best be described by the movement from point:
128. Refer to the above production possibilities curve. At the onset of the Second World War
the Soviet Union was already at full employment. Its economic adjustment from peacetime to
wartime can best be described by the movement from point:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
129. The production possibilities curve shows:
130. The negative slope of the production possibilities curve is a graphical way of indicating
that:
131. If an economy is operating on its production possibilities curve for consumer goods and
capital goods, this means that:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
132. The construction of a production possibilities curve assumes:
133. A typical concave (bowed out from the origin) production possibilities curve implies:
134. The production possibilities curve tells us:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
135. The production possibilities curve has:
Answer the question on the basis of the following production possibilities tables for two
countries, North Cantina and South Cantina:
136. Refer to the above tables. If South Cantina is producing at production alternative D, the
opportunity cost of the third unit of capital goods will be:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
137. Refer to the above tables. If North Cantina is producing at production alternative B, the
opportunity cost of the eleventh unit of consumer goods will be:
138. Refer to the above tables. Suppose that North Cantina is producing 2 units of capital
goods and 17 units of consumer goods while South Cantina is producing 2 units of capital
goods and 21 units of consumer goods. We can conclude that:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
139. Refer to the above tables. Suppose that resources in North Cantina and South Cantina are
identical in quantity and quality. We can conclude that:
140. Refer to the above tables. The opportunity cost of the fifth unit of capital goods:
141. If an economy is operating inside its production possibilities curve for consumer goods
and capital goods, it:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
142. Refer to the above diagram. Points A, B, C, D, and E show:
143. Refer to the above diagram. If society is currently producing 9 units of bicycles and 4
units of computers and it now decides to increase computer output to 6, the cost:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
144. Refer to the above diagram. The combination of computers and bicycles shown by point
G is:
145. Refer to the above diagram. If society is currently producing the combination of bicycles
and computers shown by point D, the production of 2 more units of bicycles:
146. Refer to the above diagram. The combination of computers and bicycles shown by point
F:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
147. Refer to the above diagram. The movement down the production possibilities curve from
point A to point E suggests that the production of:
148. Refer to the above diagram. As it relates to production possibilities analysis, the law of
increasing opportunity cost is reflected in curve:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
149. Refer to the above diagram. Curve B is a:
150. Refer to the above diagram. All other things equal, curve C
151. The fact that the slope of the production possibilities curve becomes steeper as we move
down along the curve indicates that:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
152. The law of increasing opportunity costs states that:
153. The concept of opportunity cost:
154. The law of increasing opportunity costs is reflected in a production possibilities curve
that is:
Chapter 01 - Limits, Alternatives, and Choices (+ Appendix)
155. The point on the production possibilities curve that is most desirable can be found by:
156. The optimal point on a production possibilities curve is achieved where:
157. The marginal benefit curve is:
