Question 1

Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is

Accepted Answer

A)  1 pear.
B)  4 apples.
C)  3 apples.
D)  41 pears.

Question 2

The point where the PPF intersects the vertical axis is

Accepted Answer

A)  unattainable.
B)  attainable and productive efficient.
C)  attainable but productive inefficient.
D)  attainable and neither productive efficient nor productive inefficient.

Question 3

Exhibit 2-9
 
-Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good B is ____________ unit(s)  of good A.

Accepted Answer

A)  3.00
B)  0.33
C)  0.75
D)  1.33

Question 4

Exhibit 2-3
 1 is the relevant production possibilities frontier, society may move to PPF2 as a result of A) an increase in resources. B) a decrease in resources. C) an increase in technology. D) both a and c E) both b and c" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of

Accepted Answer

A)  an increase in resources.
B)  a decrease in resources.
C)  an increase in technology.
D)  both a and c
E)  both b and c

Question 5

A PPF can

Accepted Answer

A)  shift outward but not inward.
B)  shift inward but not outward.
C)  shift inward or outward.
D)  shift neither inward nor outward.

Question 6

Along its production possibilities frontier (PPF)  an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that the PPF is

Accepted Answer

A)  a downward-sloping straight line.
B)  an upward-sloping straight line.
C)  a downward-sloping bowed-outward curve.
D)  a downward-sloping bowed-inward curve.

Question 7

Exhibit 2-6
 
-Refer to Exhibit 2-6. Which graph depicts the result of an increase in the unemployment rate?

Accepted Answer

A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
E)  none of the above

Question 8

The economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that opportunity cost of 1X is ___Y.

Accepted Answer

A)  5.0
B)  0.5
C)  2.5
D)  1.0
E)  2.0

Question 9

Exhibit 2-6
 
-Refer to Exhibit 2-6. Which graph depicts the result of an increase in the number of immigrants entering the country in order to work?

Accepted Answer

A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
E)  none of the above

Question 10

Exhibit 2-6
 
-Refer to Exhibit 2-6. Which graph depicts a technological breakthrough in the production of good X only?

Accepted Answer

A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
E)  none of the above

Question 11

The PPF between goods X and Y will be a downward-sloping

Accepted Answer

A)  straight line if increasing opportunity costs exist.
B)  straight line if decreasing opportunity costs exist.
C)  curve that is bowed outward if increasing opportunity costs exist.
D)  curve that is bowed outward if constant opportunity costs exist.

Question 12

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

Accepted Answer

A)  increases.
B)  decreases.
C)  remains constant.
D)  first decreases and then increases.

Question 13

An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. The production possibilities frontier (PPF)  for the economy is

Accepted Answer

A)  concave downward because the opportunity cost of producing the 10th unit of Y is greater than the opportunity cost of producing the first unit of Y.
B)  a straight (downward-sloping)  line because the opportunity cost of producing the two goods is constant.
C)  concave downward because the opportunity cost of producing the 40th unit of Y is less than the opportunity cost of producing the 10th unit of Y.
D)  a straight (downward-sloping)  line because the opportunity cost of producing the 10th unit of X is greater than the opportunity cost of producing the 40th unit of X.
E)  a straight (downward-sloping)  line because the opportunity cost of producing the 30th unit of Y is greater than the opportunity cost of producing the 30th unit of X.

Question 14

Jose has one evening in which to prepare for two exams and can employ one of two possible strategies:

The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam.

Accepted Answer

A)  12
B)  11
C)  15
D)  81

Question 15

Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.

Accepted Answer

A technological advancement in one secto...

Question 16

Exhibit 2-9
 
-Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good B is ____________ unit(s)  of good A.

Accepted Answer

A)  3.00
B)  0.33
C)  0.75
D)  1.33

Question 17

Exhibit 2-2
 2 is the relevant production possibilities frontier, then point __________ is unattainable. A) A B) G C) D D) J" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ is unattainable.

Accepted Answer

A)  A
B)  G
C)  D
D)  J

Question 18

Exhibit 2-8
 
-Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?

Accepted Answer

A)  Maria
B)  Maya
C)  Both Maria and Maya
D)  Neither Maria nor Maya

Question 19

If increasingly more units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two goods is

Accepted Answer

A)  a downward-sloping straight line.
B)  circular.
C)  an upward-sloping curve.
D)  a downward-sloping curve that is bowed outward.
E)  a downward-sloping curve that is bowed inward.

Question 20

When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Exam 2: Production Possibilities Frontier Framework

If increasingly more units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two goods is

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Exhibit 2-9 -Refer to Exhibit 2-9. For Adam, the opportunity cost of producing one unit of good B is ____________ unit(s) of good A.

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

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When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier.

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Exhibit 2-6 -Refer to Exhibit 2-6. Which graph depicts the result of an increase in the unemployment rate?

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The PPF between goods X and Y will be a downward-sloping

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Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is

Correct AnswerverifiedShow Answer

Along its production possibilities frontier (PPF) an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that the PPF is

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The economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. It follows that opportunity cost of 1X is ___Y.

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The point where the PPF intersects the vertical axis is

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Exhibit 2-2 -Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ is unattainable.

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Exhibit 2-6 -Refer to Exhibit 2-6. Which graph depicts a technological breakthrough in the production of good X only?

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Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.

Correct AnswerverifiedA technological advancement in one secto...View AnswerShow Answer

Exhibit 2-9 -Refer to Exhibit 2-9. For Alex, the opportunity cost of producing one unit of good B is ____________ unit(s) of good A.

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A PPF can

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Exhibit 2-8 -Refer to Exhibit 2-8. Who has the comparative advantage in the production of good X?

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Exhibit 2-6 -Refer to Exhibit 2-6. Which graph depicts the result of an increase in the number of immigrants entering the country in order to work?

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Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam.

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Exhibit 2-3 -Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of

Correct AnswerverifiedShow Answer

An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and 0X and 50Y. The production possibilities frontier (PPF) for the economy is

Correct AnswerverifiedShow Answer

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Exhibit 2-2 -Refer to Exhibit 2-2. If PPF₂ is the relevant production possibilities frontier, then point __________ is unattainable.

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A technological advancement in one secto...
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Exhibit 2-3 -Refer to Exhibit 2-3. If PPF₁ is the relevant production possibilities frontier, society may move to PPF₂ as a result of

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