Economics Chapter 2 Ref 27 Figure Toms Production Possibilities Look

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53. Multiple Choice: Suppose the state of Oklahoma decides...

Question Suppose the state of Oklahoma decides to produce only two goods, oil and football

helmets. According to the production possibility frontier, as oil production

increases, the production of football helmets will:

Answer increase.

54. Multiple Choice: One of the controversies surrounding ...

Question One of the controversies surrounding America’s energy markets is the trade–off

between energy production and clean air. Assuming clean air has value, the United

States will be on its production possibility frontier if and only if:

Answer resources used to produce clean air and energy are not being fully utilized.

55. Multiple Choice: If an economy is producing at a point...

Question If an economy is producing at a point on its production possibilities frontier:

Answer it is efficient in production and allocation.

Points: 0

56. Multiple Choice: Consider a production possibility fro...

Question Consider a production possibility frontier for Iraq. If in 2014 Iraq‘s resources are not

being fully utilized, Iraq will be somewhere ________ of its production possibility

frontier.

57. Multiple Choice: All points inside the production poss...

Question All points inside the production possibility frontier represent:

Answer efficient production points.

58. Multiple Choice: All points on the production possibil...

Question All points on the production possibility frontier are:

59. Multiple Choice: All points outside the production pos...

Question All points outside the production possibility frontier are:

Answer efficient production points.

Points: 0

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

Question Figure: Production Possibility Frontier Curve for Tealand

Reference: Ref 2-6

(Figure: Production Possibility Frontier for Tealand) Look at the figure Production

Possibility Frontier for Tealand. In the figure, if Tealand is producing 10 million

scones and 10 million cups of tea (point A), we know that the economy:

Answer is using its resources efficiently.

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

Question

Points: 0

Figure: Production Possibility Frontier Curve for Tealand

Reference: Ref 2-6

(Figure: Production Possibility Frontier for Tealand) Look at the figure Production

Possibility Frontier for Tealand. In the figure, Tealand is producing at point C on its

production possibility frontier. What is the opportunity cost in Tealand of increasing

the production of tea from 20 million cups to 30 million cups?

Answer 10 million cups of tea

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

Question Figure: Production Possibility Frontier Curve for Tealand

Reference: Ref 2-6

(Figure: Production Possibility Frontier for Tealand) Look at the figure Production

Possibility Frontier for Tealand. In the figure, Tealand can produce at point E only if

the government:

Answer eliminates unemployment.

Points: 0

63. Multiple Choice: The production possibility frontier i...

Question The production possibility frontier is bowed out from the origin because:

64. Multiple Choice: The opportunity cost of production:

Question The opportunity cost of production:

Answer is the price of a good.

65. Multiple Choice: If Poland decides to increase the pro...

Question If Poland decides to increase the production of steel—and decrease the production

of vodka—the bowed–out production possibility frontier would suggest that there will

be ________ opportunity cost of producing more steel.

Points: 0

66. Multiple Choice: Economists usually make the assumptio...

Question Economists usually make the assumption that production is subject to increasing

opportunity costs because:

Answer higher production usually results in more inflation.

67. Multiple Choice: The production possibility frontier w...

Question The production possibility frontier will shift outward for which of the following

reasons?

Answer a decrease in the labor force

68. Multiple Choice: In terms of the production possibilit...

Question In terms of the production possibility frontier, inefficient use of available resources

is shown by:

Answer an increase in the labor force growth rate.

69. Multiple Choice: The production possibility frontier w...

Question The production possibility frontier will shift outward for all of the following reasons

except:

Points: 0

70. Multiple Choice: The effect of an increase in producti...

Question The effect of an increase in productive inputs such as labor and capital can be

shown by:

Answer a point inside of the production possibility frontier.

71. Multiple Choice: The effect of a tremendous natural di...

Question The effect of a tremendous natural disaster can be shown by:

Answer a point inside of the production possibility frontier.

72. Multiple Choice: An inward shift in the U.S. economy‘s...

Question An inward shift in the U.S. economy‘s production possibility frontier could represent

which of the following?

Points: 0

73. Multiple Choice: If the production possibility frontie…

Question If the production possibility frontier is a straight line, which of the following is true?

74. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, which point or points represent an efficient combination

of coconuts and fish that Tom could choose to produce?

Answer A only

75. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question

Points: 0

Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, which point or points would represent an inefficient

combination of coconuts and fish for Tom to produce?

Answer A only

76. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, which point or points represent a combination of

coconuts and fish not feasible for Tom to produce at this time?

Answer A only

Points: 0

77. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, which of the point or points represents the combination

of coconuts and fish feasible for Tom to produce at this time?

Answer A only

78. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question

Points: 0

Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, the opportunity cost for Tom to move from point A on the

curve to point B is:

Answer 10 coconuts.

79. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, the opportunity cost for Tom to move from point B on the

curve to point A is:

Answer 10 coconuts.

Points: 0

80. Multiple Choice: Figure: Tom‘s Production Possibilitie…

Question Figure: Tom‘s Production Possibilities

Reference: Ref 2-7

(Figure: Tom’s Production Possibilities) Look at the figure Tom’s Production

Possibilities. In the figure, the opportunity cost for Tom to move from point C on the

curve to point A is:

Answer 10 coconuts.

81. Multiple Choice: The ________ illustrates the trade-of...

Question The ________ illustrates the trade-offs facing an economy that produces only two

goods.

Points: 0

82. Multiple Choice: Reference: Ref 2-8 (Table: Trade-off…

Question

Reference: Ref 2-8

(Table: Trade–off of Study Time and Leisure Time) Look at the table Trade–off of

Study Time and Leisure Time. A student sleeps 8 hours per day and divides the

remaining time between study time and leisure time. The table shows the

combinations of study and leisure time that can be produced in the 16 waking

hours of each day. If a student decides to consume one additional hour of leisure

time, how many hours of study time must be given up?

Answer 4

83. Multiple Choice: Reference: Ref 2-8 (Table: Trade-off…

Question

Reference: Ref 2-8

(Table: Trade–off of Study Time and Leisure Time) Look at the table Trade–off of

Study Time and Leisure Time. A student sleeps 8 hours per day and divides the

remaining time between study and leisure time. Suppose this student is studying 4

hours and spending 10 hours doing leisure activities. What is true about this

allocation of his scarce resources?

Answer This point is outside the production possibility frontier.

Points: 0

84. Multiple Choice: Reference: Ref 2-8 (Table: Trade-off…

Question

Reference: Ref 2-8

(Table: Trade–off of Study Time and Leisure Time) Look at the table Trade–off of

Study Time and Leisure Time. A student sleeps 8 hours per day and divides the

remaining time between study time and leisure time. The table shows the

combinations of study and leisure time that can be produced in the 16 waking

hours of each day. Suppose the student completes a speed-reading course that

allows him to do the same amount of studying in half as many hours. Which of the

following is now true of his opportunity costs?

Answer The opportunity cost of leisure has increased.

85. Multiple Choice: If a production possibility frontier ...

Question If a production possibility frontier is a straight line, it tells us that the opportunity

cost of producing one more unit of good X:

Answer is an increasing amount of good Y.

Points: 0

86. Multiple Choice: Suppose Indiana produces only steel a...

Question Suppose Indiana produces only steel and corn, with fixed amounts of land, labor,

and capital resources. Which of the following best creates potential economic

growth?

Answer The unemployment rate in Indiana rises from 5% to 6%.

87. Multiple Choice: The production possibility frontier i...

Question The production possibility frontier illustrates:

88. Multiple Choice: Figure: Wine and Wheat Reference: Ref…

Question

Points: 0

Figure: Wine and Wheat

Reference: Ref 2-9

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

producing 12 tons of wheat and 9,000 bottles of wine, we know the economy:

89. Multiple Choice: Figure: Wine and Wheat Reference: Ref…

Question

Points: 0

Figure: Wine and Wheat

Reference: Ref 2-9

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

producing at point A, we know the economy is:

Answer using its resources efficiently.

90. Multiple Choice: Figure: Wine and Wheat Reference: Ref…

Question

Points: 0

Figure: Wine and Wheat

Reference: Ref 2-9

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

producing at point A and it wants to produce at point B, it needs to:

Answer trade with another country.

91. Multiple Choice: Figure: Wine and Wheat Reference: Ref…

Question

Points: 0

Figure: Wine and Wheat

Reference: Ref 2-9

(Figure: Wine and Wheat) Look at the figure Wine and Wheat. What is the

opportunity cost of moving from only producing wheat to only producing wine?

Answer 3 tons of wheat

92. Multiple Choice: Figure: Wine and Wheat Reference: Ref…

Question

Points: 0

Figure: Wine and Wheat

Reference: Ref 2-9

(Figure: Wine and Wheat) Look at the figure Wine and Wheat. What is the

opportunity cost of moving from only producing wheat to producing at point D?

15 tons of wheat

93. Multiple Choice: Figure: Wine and Wheat Reference: Ref…

Question

Points: 0