week 1 quiz

If an economy is producing efficiently, which of the following can lead to economic growth?

Additional or improved infrastructure

The law of increasing opportunity costs leads to what feature of the PPF graph?

Bowed-outward shape

Which of the following was one of the consequences of introducing a peanut grinder and blender to rural Mali?

Increase in literacy among rural African women.

Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

It will have to give up production and consumption of some other good.

Suppose recent investment and upgrades in public infrastructure such as roads, electrical grids, and broadband internet now makes businesses more productive, allowing them to produce more than before. Which of the following happens to the production possibilities curve as a result?

The PPF shifts outward.

Suppose there is a hot summer drought that leads to smaller harvest yields for agricultural products. Which of the following would happen to a PPF that included an agricultural product on each of its axes?

The PPF would shift inward.

How do you calculate opportunity cost?

Whats Given Up/What You Gained

An inward shift of a nation's production possibilities frontier can occur due to

a natural disaster like a hurricane or bad earthquake.

The production possibilities frontier model shows that

if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.

As the quantity of a good on the x-axis increases, the slope of the PPF ___________ and the opportunity cost of the good on the x-axis ___________.

increases / increases

In a production possibilities frontier model, a point ________ the frontier is productively inefficient.

inside

The attainable production points on a production possibility curve are

the points along and inside the production possibility frontier.