1.04 AP Macro Flaschards

According to the graph above, the opportunity cost of producing 25 additional bottles of coconut oil is 300 shell necklaces. 300 or more shell necklaces. 300 or fewer shell necklaces. 200 shell necklaces. 100 shell necklaces.

100 shell necklaces.

According to the production possibilities curve above, what is the opportunity cost of adding an additional 100 jars of guava jelly in an economy that is already producing 200 jars of guava jelly? 25 fishing boats 100 fishing boats 150 fishing boats 25 jars of guava jelly 100 jars of guava jelly

25 fishing boats

The table above shows the production possibilities for two goods, trucks and motorcycles. The opportunity cost of producing the third truck is 1 37 motorcycles. 18 motorcycles. 11 motorcycles. 10 motorcycles. 7 motorcycles.

7 motorcycles.

sing the production possibilities frontier for the Macro Islands above, which of the following can we conclude about point A? The economy is operating efficiently. There is a decrease in economic growth. There is unemployment in the economy. Some guava jelly must be given up. Some fishing boats must be given up.

There is unemployment in the economy.

A correctly drawn production possibilities curve shows all of the following except: 2 goods How scarce resources are allocated between 2 goods Opportunity cost Full employment of resources What resources are being allocated

What resources are being allocated

An economy that is not using all of its resources would be operating on the line closer to the vertical axis. be operating on the line closer to the horizontal axis. be operating inside the production possibilities curve. be operating outside the production possibilities curve. be suffering from high inflation.

be operating inside the production possibilities curve.

According to the production possibilities curve above, if the economy moves from point B to point E, the opportunity cost of each additional guava jelly increases. decreases. remains the same.

increases.

According to the production possibilities curve above, to move the economy from point B to point G then more guava jelly would need to be produced. more fishing boats would need to be produced. the economy would be at full employment of resources in both goods. technology would need to change to allow increased production of guava jelly. more workers would be hired to increase production of fishing boats.

technology would need to change to allow increased production of guava jelly.

According to the production possibilities curve above, if the economy is producing 75 fishing boats and 400 jars of guava jelly, then the economy is not using resources efficiently. the economy is using resources efficiently. the economy is operating at point G. there is unemployment of resources in the fishing boat industry. there is unemployment of resources in the guava jelly industry.

the economy is using resources efficiently.

According to the production possibilities curve above, if the economy was operating at point D, then the economy can move to any point on the blue line only if there is a technological innovation. there is inadequate demand for these two goods. there are not enough resources to make more fishing boats. there are no resources to make more guava jelly. there is unemployment in the economy and/or an inefficient allocation of resources.

there is unemployment in the economy and/or an inefficient allocation of resources.