Question 1

-Refer to Exhibit 2-6.Which graph depicts society's choice to produce more of good X and less of good Y?

Accepted Answer

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

Question 2

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

Accepted Answer

A)   5,000 televisions.
B)   5,000 fax machines.
C)   10,000 televisions.
D)   10,000 fax machines.

Question 3

-Refer to Exhibit 2-8.For Maya,the opportunity cost of producing one unit of good Y is ___________ unit(s) of good X.

Accepted Answer

A)   2.00
B)   1.00
C)   10.00
D)   0.50

Question 4

-Refer to Exhibit 2-8.For Maria,the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.

Accepted Answer

A)   2.00
B)   1.00
C)   10.00
D)   0.50

Question 5

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 6

Economic growth causes the PPF to

Accepted Answer

A)   shift leftward.
B)   shift rightward.
C)   remain constant.
D)   go from a straight line to a curve.

Question 7

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 8

1. B)  inefficient if the economy's PPF is PPF2. C)  attainable if the economy's PPF is PPF2. D)  all of the above E)  none of the above" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-7.Point F is

Accepted Answer

A)   unattainable if the economy's PPF is PPF1.
B)   inefficient if the economy's PPF is PPF2.
C)   attainable if the economy's PPF is PPF2.
D)   all of the above
E)   none of the above

Question 9

Economic growth is illustrated by a shift inward (toward the origin)of the PPF.

Accepted Answer

A) True 
 B)False

Question 10

A productive efficient society

Accepted Answer

A)   produces at a point on its PPF.
B)   can produce more of one good only by giving up some of another good.
C)   cannot produce unlimited amounts of a good.
D)   still has to make choices.
E)   all of the above

Question 11

A society is productive inefficient when

Accepted Answer

A)   it produces at a point inside (below) its PPF.
B)   it does not produce the maximum output with its given resources and technology.
C)   it can produce more of one good without giving up some of another good.
D)   both a and b
E)   all of the above

Question 12

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Accepted Answer

A)   a gain of resources.
B)   a loss of resources.
C)   technological improvement in the production of both goods.
D)   an increase in unemployment of some resources.

Question 13

-Refer to Exhibit 2-9.If Alex and Adam each specialize in the good in which he has a comparative advantage and then engage in trade,____________________ can consume a combination of goods that lies beyond their PPF.

Accepted Answer

A)   Alex,but not Adam,
B)   Adam,but not Alex
C)   Alex and Adam
D)   neither Alex nor Adam

Question 14

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 15

-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 16

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

Accepted Answer

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

Question 17

Points that lie inside (or below) the PPF are

Accepted Answer

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

Question 18

-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

Accepted Answer

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.

Question 19

The economy was at point A producing 100X and 200Y.It moved to point B where it produces 200X and 300Y.It follows that

Accepted Answer

A)   point A may have been a point below the economy's PPF,while point B may lie on the PPF.
B)   the economy's PPF could have shifted outward and point A was a point on the economy's old PPF.
C)   the economy has moved from one point on its PPF to another point on the same PPF.
D)   a or b
E)   a or c

Question 20

Consider two points on a PPF: point A,at which there are 500 oranges and 100 apricots,and point B,at which there are 501 oranges and 95 apricots.If the economy is currently at point B,the opportunity cost of moving to point A is

Accepted Answer

A)   5 apricots.
B)   1 orange.
C)   95 apricots.
D)   500 oranges.

Exam 2: Production Possibilities Frontier Framework

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.

Correct AnswerverifiedShow Answer

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

-Refer to Exhibit 2-8.For Maria,the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.

Correct AnswerverifiedShow Answer

Economic growth causes the PPF to

Correct AnswerverifiedShow Answer

Economic growth is illustrated by a shift inward (toward the origin)of the PPF.

Correct AnswerverifiedShow Answer

-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

Correct AnswerverifiedShow Answer

-Refer to Exhibit 2-9.If Alex and Adam each specialize in the good in which he has a comparative advantage and then engage in trade,____________________ can consume a combination of goods that lies beyond their PPF.

Correct AnswerverifiedShow Answer

Consider two points on a PPF: point A,at which there are 500 oranges and 100 apricots,and point B,at which there are 501 oranges and 95 apricots.If the economy is currently at point B,the opportunity cost of moving to point A is

Correct AnswerverifiedShow Answer

A productive efficient society

Correct AnswerverifiedShow Answer

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Correct AnswerverifiedShow Answer

Points that lie inside (or below) the PPF are

Correct AnswerverifiedShow Answer

-Refer to Exhibit 2-6.Which graph depicts society's choice to produce more of good X and less of good Y?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-Refer to Exhibit 2-7.Point F is

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A PPF can

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The economy was at point A producing 100X and 200Y.It moved to point B where it produces 200X and 300Y.It follows that

Correct AnswerverifiedShow Answer

A society is productive inefficient when

Correct AnswerverifiedShow Answer

-Refer to Exhibit 2-8.For Maya,the opportunity cost of producing one unit of good Y is ___________ unit(s) of good X.

Correct AnswerverifiedShow Answer

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