Chapter 2—Production Possibilities Frontier Framework

Question # 00039589 Posted By: solutionshere Updated on: 01/01/2015 02:41 AM Due on: 01/01/2015
Subject General Questions Topic General General Questions Tutorials:
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Exhibit 2-5

65. Refer to Exhibit 2-5. The economy is currently operating at point F. The opportunity cost of moving to point E is approximately

a.

35 fax machines.

b.

55 fax machines.

c.

zero fax machines.

d.

40 fax machines.

66. Refer to Exhibit 2-5. As more fax machines are produced, the opportunity cost of producing them

a.

increases.

b.

decreases.

c.

remains constant.

d.

first decreases and then increases.

67. Refer to Exhibit 2-5. The opportunity cost of moving from point A to point B is approximately

a.

5,000 televisions.

b.

5,000 fax machines.

c.

10,000 televisions.

d.

10,000 fax machines.

68. Refer to Exhibit 2-5. The opportunity cost of moving from point D to point C is

a.

5,000 televisions.

b.

5,000 fax machines.

c.

10,000 televisions.

d.

10,000 fax machines.

69. Refer to Exhibit 2-5. The opportunity cost of moving from point C to point B is

a.

15,000 televisions.

b.

15,000 fax machines.

c.

10,000 televisions.

d.

20,000 fax machines.

70. Refer to Exhibit 2-5. "In order to produce one more television set, we must forfeit the production of one fax machine." This statement describes a movement from

a.

point C to point D.

b.

point D to point E.

c.

point E to point F.

d.

point E to point D.

e.

point D to point C.

71. Refer to Exhibit 2-5. Which of the following labeled points are productive efficient?

a.

A, B, C, D, and E

b.

B, C and D only

c.

C only

d.

All of the points are productive efficient.

e.

None of the points are productive efficient.

72. Refer to Exhibit 2-5. Given available resources and technology, this economy can produce 50,000 television sets and 50,000 fax machines only if it chooses to

a.

have an equal distribution of goods.

b.

operate at both points C and D.

c.

combine points C and D.

d.

none of the above

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Tutorials for this Question
  1. Tutorial # 00038833 Posted By: solutionshere Posted on: 01/01/2015 02:42 AM
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    to point E is approximately a. 35 fax machines. b. 55 fax ...
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