Economics Chapter 2 Answer 112 Multiple Choice Reference Ref 212

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Figure: Wine and Wheat

Reference: Ref 2-9

(Figure: Wine and Wheat) Look at the figure Wine and Wheat. If this economy is

producing on the production possibility frontier, what would allow it to produce at

point C?

94. Multiple Choice: The U.S. production possibility front...

Question The U.S. production possibility frontier would ________ if all computers using

Microsoft operating systems contracted a virus that deleted all information on those

computers.

95. Multiple Choice: The U.S. production possibility front...

Question The U.S. production possibility frontier will ________ if there is a large influx of

immigrants.

Points: 0

96. Multiple Choice: In Kessy‘s old kitchen, he could bake…

Question In Kessy‘s old kitchen, he could bake 10 cookies or mix 15 glasses of lemonade in

one day. Now Kessy has a larger oven and refrigerator. How does this affect his

production possibility frontier?

He will not be able to produce as much as before.

97. Multiple Choice: Reference: Ref 2-10 (Table: Producti...

Question

Reference: Ref 2-10

(Table: Production Possibilities Schedule I) Look at the table Production

Possibilities Schedule I. If the economy produces 4 units of consumer goods per

period, it also can produce at most ________ units of capital goods per period.

Answer 30

98. Multiple Choice: Reference: Ref 2-10 (Table: Producti...

Question

Points: 0

Reference: Ref 2-10

(Table: Production Possibilities Schedule I) Look at the table Production

Possibilities Schedule I. If the economy produces 24 units of capital goods per

period, it also can produce at most ________ units of consumer goods per period.

Answer 5

99. Multiple Choice: Reference: Ref 2-10 (Table: Producti...

Question

Reference: Ref 2-10

(Table: Production Possibilities Schedule I) Look at the table Production

Possibilities Schedule I. The opportunity cost of producing the third unit of

consumer goods is ________ units of capital goods.

100. Multiple Choice: Figure: Production Possibility Fronti...

Question

Points: 0

Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. Points A, B, E, and F:

101. Multiple Choice: Figure: Production Possibility Fronti...

Question Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. This production possibility frontier is:

Points: 0

102. Multiple Choice: Figure: Production Possibility Fronti...

Question Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. If the economy is operating at point B, producing 16 cars and 12

computers per period, a decision to move to point E and produce 18 computers:

Answer indicates you can have more computers and cars simultaneously.

103. Multiple Choice: Figure: Production Possibility Fronti...

Question

Points: 0

Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. The combination of cars and computers at point H:

104. Multiple Choice: Figure: Production Possibility Fronti...

Question Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. If the economy is producing 8 cars and 12 computers per period:

Points: 0

105. Multiple Choice: Figure: Production Possibility Fronti...

Question Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. A movement from producing 12 cars and 16 computers per period to point

B means:

106. Multiple Choice: Figure: Production Possibility Fronti...

Question

Points: 0

Figure: Production Possibility Frontier

Reference: Ref 2-11

(Figure: Production Possibility Frontier) Look at the figure Production Possibilities

Frontier. Which of the following is not the maximum amounts of cars and

computers this economy can produce?

107. Multiple Choice: If Farmer Sam MacDonald can produce 2...

Question If Farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes

or no cabbages and 100 pounds of potatoes and if he faces a linear production

possibility frontier for his farm, the opportunity cost of producing an additional

pound of potatoes is ________ pound(s) of cabbage.

Answer 1/2

108. Multiple Choice: If Farmer Sam MacDonald can produce 2...

Question

Points: 0

If Farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes

or no cabbages and 100 pounds of potatoes and if he faces a linear production

possibility frontier for his farm, the opportunity cost of producing an additional

pound of cabbage is ________ pound(s) of potatoes.

109. Multiple Choice: The slope of a typical production pos...

Question The slope of a typical production possibility frontier is:

Answer 0.

110. Multiple Choice: Reference: Ref 2-12 (Table: Producti...

Question

Reference: Ref 2-12

(Table: Production Possibilities Schedule II) Look at the table Production

Possibilities Schedule II. If the economy is producing at alternative Y, the

opportunity cost to it of producing at Z is ________ units of consumer goods per

period.

Answer 1

Points: 0

111. Multiple Choice: Reference: Ref 2-12 (Table: Producti...

Question

Reference: Ref 2-12

(Table: Production Possibilities Schedule II) Look at the table Production

Possibilities Schedule II. If an economy is producing at alternative X, the

opportunity cost to it of producing at Y is ________ units of consumer goods per

period.

Answer 2

112. Multiple Choice: Reference: Ref 2-12 (Table: Producti...

Question

Reference: Ref 2-12

(Table: Production Possibilities Schedule II) Look at the table Production

Possibilities Schedule II. The production of 8 units of consumer goods and 2 units

of capital goods per period would:

Answer result in full employment.

113. Multiple Choice: Figure: Bicycles and Radishes I Refer…

Question

Points: 0

Figure: Bicycles and Radishes I

Reference: Ref 2-13

(Figure: Bicycles and Radishes I) Look at the figure Bicycles and Radishes I. It shows

the production possibility frontiers for two countries that produce only radishes and

bicycles. The axes of both graphs are measured in equivalent units. Country A is now

operating at point M, and country B is now operating at point N. The opportunity cost of

producing an additional ton of radishes would be greater in:

Answer country A.

114. Multiple Choice: Figure: Bicycles and Radishes I Refer…

Question

Points: 0

Figure: Bicycles and Radishes I

Reference: Ref 2-13

(Figure: Bicycles and Radishes I) Look at the figure Bicycles and Radishes I. It shows

production possibility frontiers for two countries that produce only radishes and

bicycles. The axes of both graphs are measured in equivalent units. Country A is now

operating at point M, and country B is now operating at point N. Suppose country A

discovered a new technology that greatly increased its ability to produce bicycles. This

would:

Answer lower the opportunity cost of producing radishes in country A.

115. Multiple Choice: Figure: Bicycles and Radishes II Refe…

Question Figure: Bicycles and Radishes II

Reference: Ref 2-14

(Figure: Bicycles and Radishes II) Look at the figure Bicycles and Radishes II. The

country depicted in this figure is operating at point M. It could achieve production at

point I only if it:

Points: 0

Answer used its resources more efficiently.

116. Multiple Choice: Figure: Sugar and Freight Trains Refe...

Question Figure: Sugar and Freight Trains

Reference: Ref 2-15

(Figure: Sugar and Freight Trains) Look at the figure Sugar and Freight Trains.

Suppose the economy is operating at point B. The opportunity cost of producing

the third freight train would be:

Answer 6 tons of sugar.

117. Multiple Choice: (Figure: Sugar and Freight Trains) Lo...

Question (Figure: Sugar and Freight Trains) Look at the figure Sugar and Freight Trains.

Suppose the economy is operating at point C. The opportunity cost of producing

the fourth freight train would be:

Answer 19 tons of sugar.

45 tons of sugar.

Points: 0

118. Multiple Choice: Figure: Strawberries and Submarines I...

Question Figure: Strawberries and Submarines II

Reference: Ref 2-16

(Figure: Strawberries and Submarines II) Look at the figure Strawberries and

Submarines II. Point F:

119. Multiple Choice: Figure: Strawberries and Submarines I...

Question

Points: 0

Figure: Strawberries and Submarines II

Reference: Ref 2-16

(Figure: Strawberries and Submarines II) Look at the figure Strawberries and

Submarines II. Suppose the economy is now operating at point A. The first

submarine, which is achieved at point B, would have an opportunity cost of

________ million tons of strawberries.

950

120. Multiple Choice: Figure: Strawberries and Submarines I...

Question

Points: 0

Figure: Strawberries and Submarines II

Reference: Ref 2-16

(Figure: Strawberries and Submarines II) Look at the figure Strawberries and

Submarines II. Assume that the economy is now operating at point A. The

opportunity cost of moving to point C is equal to ________ million tons of

strawberries:

Answer 800

121. Multiple Choice: Figure: Strawberries and Submarines I...

Question

Points: 0

Figure: Strawberries and Submarines II

Reference: Ref 2-16

(Figure: Strawberries and Submarines II) Look at the figure Strawberries and

Submarines II. The downward slope of the production possibility frontier implies that

resources:

Answer must be used efficiently.

122. Multiple Choice: Figure: Strawberries and Submarines I...

Question

Points: 0

Figure: Strawberries and Submarines II

Reference: Ref 2-16

(Figure: Strawberries and Submarines II) Look at the figure Strawberries and

Submarines II. Suppose the economy is now operating at point B. Achieving

production at point F would require that the economy:

Answer achieve full employment and an efficient allocation of resources.

123. Multiple Choice: Efficient production exists when the ...

Question Efficient production exists when the economy is:

Answer operating underneath its production possibility frontier.

124. Multiple Choice: Assume an economy is operating on its...

Question Assume an economy is operating on its production possibility frontier, which

shows the production of military and civilian goods. If the output of military goods is

increased, the output of civilian goods:

Answer will increase, too.

Points: 0

125. Multiple Choice: The process observed when an economy‘…

Question The process observed when an economy‘s production possibility frontier is shifted

outward is:

Answer comparative advantage.

126. Multiple Choice: Increases in resources or improvement...

Question Increases in resources or improvements in technology will tend to cause a

society‘s production possibility frontier to:

Answer shift inward to the left.

127. Multiple Choice: Technological improvements will:

Question Technological improvements will:

Answer leave the production possibility frontier unchanged.

Points: 0

128. Multiple Choice: Figure: Consumer and Capital Goods Re…

Question Figure: Consumer and Capital Goods

Reference: Ref 2-17

(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital

Goods. If the economy is operating at point Y and its relevant production possibility

frontier is curve 1, this means that:

129. Multiple Choice: Figure: Consumer and Capital Goods Re…

Question

Points: 0