Chapter 2 Thinking Like an Economist
213. Refer to Figure 2-11. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?
|
a. |
a decrease in unemployment |
|
b. |
a technological advance in the consumer goods industries |
|
c. |
a general technological advance |
|
d. |
an increase in the availability of capital-producing resources |
214. Refer to Figure 2-11. The shift of the production possibilities frontier from A to B can best be described as
|
a. |
a downturn in the economy. |
|
b. |
economic growth. |
|
c. |
an enhancement of equality. |
|
d. |
an improvement in the allocation of resources. |
Figure 2-12
215. Refer to Figure 2-12. Which of the following combinations of points are both efficient and attainable for this economy?
|
a. |
B, C |
|
b. |
A, D, H |
|
c. |
A, B, C, D, H |
|
d. |
F, G |
216. Refer to Figure 2-12. Which of the following statements is true about point B for this economy?
|
a. |
Point B is currently unattainable. |
|
b. |
Point B is efficient. |
|
c. |
At point B, more pillows are produced than blankets. |
|
d. |
There is unemployment at point B. |
217. Refer to Figure 2-12. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?
|
a. |
D, H |
|
b. |
B, C |
|
c. |
F, G |
|
d. |
A, B |
218. Refer to Figure 2-12. One difference between points A and B is that
|
a. |
Point B is unattainable with current resources, but point A is attainable. |
|
b. |
All resources are fully employed at point A but there is unemployment at point B. |
|
c. |
More output can be produced at point A but no additional output can be produced at point B. |
|
d. |
This economy produces more blankets at point B than at point A. |
Table 2-5
|
Cookies (in dozens) |
Coffee (in pounds) |
|
1000 |
0 |
|
800 |
350 |
|
600 |
650 |
|
400 |
800 |
|
200 |
1000 |
|
0 |
1150 |
219. Refer to Table 2-5.Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?
|
a. |
100 pounds of coffee |
|
b. |
200 pounds of coffee |
|
c. |
300 pounds of coffee |
|
d. |
400 pounds of coffee |
220. Refer to Table 2-5.Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of coffee from 350 pounds to 650 pounds?
|
a. |
400 dozen cookies |
|
b. |
300 dozen cookies |
|
c. |
200 dozen cookies |
|
d. |
200 pounds of coffee |
221. Refer to Table 2-5.Table 2-5 shows one set of production possibilities. Which of the following statements is correct?
|
a. |
The opportunity cost of a dozen cookies does not depend on how many pounds of coffee are being produced. |
|
b. |
The opportunity cost of a dozen cookies increases as more cookies are produced. |
|
c. |
The opportunity cost of a dozen cookies decreases as more cookies are produced. |
|
d. |
The opportunity cost of a pound of coffee decreases as more coffee is produced. |
222. Refer to Table 2-5.Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is
|
a. |
bowed outward indicating increasing opportunity costs. |
|
b. |
bowed outward indicating decreasing opportunity costs. |
|
c. |
a straight line indicating constant opportunity costs. |
|
d. |
bowed inward indicating decreasing opportunity costs. |
223. Refer to Table 2-5.Table 2-5 shows one set of production possibilities. Which of the following combinations of cookies and coffee is not currently attainable but would be attainable if there was an improvement in overall production technology?
|
a. |
800 dozen cookies and 150 pounds of coffee |
|
b. |
700 dozen cookies and 400 pounds of coffee |
|
c. |
500 dozen cookies and 850 pounds of coffee |
|
d. |
300 dozen cookies and 900 pounds of coffee |
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Solution: Chapter 2 Thinking Like an Economist