Chapter 2—Production Possibilities Frontier Framework
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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Solution: Chapter 2—Production Possibilities Frontier Framework