Question 1

Figure: Production Possibility Frontier
(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:
A.indicates you can have more computers and cars simultaneously.
B.makes it clear that this economy has decreasing opportunity costs.
C.involves a loss of 8 cars per period.
D.involves a loss of 4 cars per period.

Accepted Answer

The answer of Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier)...

Question 2

(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.
A.5
B.4
C.3
D.2

Accepted Answer

The answer of (Table: Production Possibilities Schedule I) Look at...

Question 3

Figure: Wine and Wheat
(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:
A.trade with another country.
B.increase its resources.
C.decrease production.
D.use its existing resources efficiently.

Accepted Answer

The answer of Figure: Wine and Wheat
(Figure: Wine and Wheat)...

Question 4

The U.S.production possibility frontier will if there is a large influx of immigrants.
A.shift in
B.shift out
C.not change
D.cannot be determined from the information provided

Accepted Answer

The answer of The U.S.production possibility frontier will if there...

Question 5

Figure: Production Possibility Frontier
   (Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier.Points A, B, E, and F: 
A.indicate combinations of cars and computers that society can produce using all of its resources efficiently.
B.show that the opportunity cost of more cars increases, but that of more computers decreases.
C.indicate that society wants computers more than cars.
D.indicate constant costs for cars and increasing costs for computers.

Accepted Answer

The answer of Figure: Production Possibility Frontier
   (Figure:...

Question 6

Figure: Wine and Wheat
(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?
A.3 tons of wheat
B.6 tons of wheat
C.9 tons of wheat
D.15 tons of wheat

Accepted Answer

The answer of Figure: Wine and Wheat
(Figure: Wine and Wheat)...

Question 7

The slope of a typical production possibility frontier is:

Accepted Answer

The answer of The slope of a typical production possibility...

Question 8

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?
A.It shifts out his production possibility frontier.
B.It shifts in his production possibility
C.frontier.He will not be efficient.
D.He will not be able to produce as much as before.

Accepted Answer

The answer of In Kessy's old kitchen, he could bake...

Question 9

Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier.The combination of cars and computers at point H:
A.can be attained but would cost too much.
B.cannot be attained given the level of technology and the resources available.
C.has no meaning, since it is not what consumers want.
D.is attainable but would increase unemployment.

Accepted Answer

The answer of Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier)...

Question 10

Figure: Production Possibility Frontier
(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:
A.a loss of 4 computers and a gain of 4 cars per period.
B.a gain of 2 cars and a loss of 4 computers per period.
C.a gain of 4 cars and a loss of 6 computers per
D.period.a loss of 2 cars and a gain of 4 computers per period.

Accepted Answer

The answer of Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier)...

Question 11

Figure: Production Possibility Frontier
(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?
A.18 cars and 0 computers per
B.period 0 cars and 20 computers
C.per period 16 cars and 12 computers
D.per period 0 cars and 18 computers per period

Accepted Answer

The answer of Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier)...

Question 12

Figure: Production Possibility Frontier
  (Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier.If the economy is producing 8 cars and 12 computers per period: 
A.this is an attainable choice but involves unemployment or inefficiency.
B.the notion of increasing opportunity cost is invalidated.
C.the economy is still efficient but has made a decision not to buy as much as it could.
D.something must be done to reduce the amount of employment.

Accepted Answer

The answer of Figure: Production Possibility Frontier
  (Figure: Production...

Question 13

Figure: Production Possibility Frontier
   (Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier.This production possibility frontier is: 
A.bowed out from the origin because of increasing opportunity costs.
B.bowed in toward the origin because of increasing opportunity costs.
C.bowed in toward the origin because of constant cost of cars and
D.computers.linear because of constant costs.

Accepted Answer

The answer of Figure: Production Possibility Frontier
   (Figure:...

Question 14

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.
A.1/2
B.2
C.100
D.200

Accepted Answer

The answer of If Farmer Sam MacDonald can produce 200...

Question 15

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.
A.1/2
B.2
C.100
D.200

Accepted Answer

The answer of If Farmer Sam MacDonald can produce 200...

Question 16

(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.
A.30
B.28
C.10
D.18

Accepted Answer

The answer of (Table: Production Possibilities Schedule I) Look at...

Question 17

Figure: Wine and Wheat
(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?
A.an improvement in technology
B.a decrease in resources
C.a decrease in production
D.the elimination of unemployment

Accepted Answer

The answer of Figure: Wine and Wheat
(Figure: Wine and Wheat)...

Question 18

The U.S.production possibility frontier would if all computers using Microsoft operating systems contracted a virus that deleted all information on those computers.
A)shift in
B)shift out
C)not change
D)cannot be determined from the information provided

Accepted Answer

If all computers using Microsoft operating systems contracted a virus that deleted all information on those computers, it would cause a shift inward in the U.S. production possibility frontier because the economy would be producing less due to the loss of data and resources.

Question 19

Figure: Wine and Wheat
   (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? 
A.3 tons of wheat
B.6 tons of wheat
C.9 tons of wheat
D.15 tons of wheat

Accepted Answer

The answer of Figure: Wine and Wheat
   (Figure:...

Question 20

(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.
A.2
B.4
C.6
D.8

Accepted Answer

The answer of (Table: Production Possibilities Schedule I) Look at...

Quiz 1: First Principles

(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. A.5 B.4 C.3 D.2

Figure: Wine and Wheat (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: A.trade with another country. B.increase its resources. C.decrease production. D.use its existing resources efficiently.

The U.S.production possibility frontier will if there is a large influx of immigrants. A.shift in B.shift out C.not change D.cannot be determined from the information provided

Figure: Wine and Wheat (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? A.3 tons of wheat B.6 tons of wheat C.9 tons of wheat D.15 tons of wheat

The slope of a typical production possibility frontier is:

(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. A.30 B.28 C.10 D.18

The U.S.production possibility frontier would if all computers using Microsoft operating systems contracted a virus that deleted all information on those computers.

Figure: Wine and Wheat (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? A.3 tons of wheat B.6 tons of wheat C.9 tons of wheat D.15 tons of wheat

(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. A.2 B.4 C.6 D.8