chap 2 econ

A war in country A destroyed many factories and houses and killed many people in this country. As a result, the country's Select one: a. production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war. b. PPF after the war has probably shifted to the left compared to its PPF prior to the war. c. PPF after the war is probably the same PPF as before the war. d. ability to produce goods and services has increased. e. b and d

B

Consider two points on the PPF: point A, at which there are 10 apples and 20 pears, and point B, at which there are 13 apples and 15 pears. If the economy is currently at point A, the opportunity cost of moving to point B is Select one: a. 10 apples. b. 5 pears. c. 3 apples. d. 20 pears.

B

If an economy can produce a maximum of 12 units of good A and the opportunity cost of 1B is always 3A, then what is the maximum units of good B the economy can produce? Select one: a. 36 b. 4 c. 12 d. 15 e. none of the above

B

If most resources are better suited for the production of some goods than others, then a PPF would be a Select one: a. downward-sloping curve that is bowed inward b. downward-sloping curve that is bowed outward. c. downward-sloping straight line. d. upward-sloping straight line.

B

If the opportunity cost of making t-shirt by Daniel is higher than Jack, and Daniel can produce apple at a lower opportunity cost than Jack, it follows that Select one: a. Jack has a comparative advantage in producing apple and Daniel has a comparative advantage in making t-shirts. b. Jack has a comparative advantage in making t-shirt and Daniel has a comparative advantage in producing apple. c. Both Jack and Daniel have a comparative advantage in making t-shirts. d. Both Jack and Daniel have a comparative disadvantage in making t-shirts. e. There is not enough information to answer the question.

B

Refer to Exhibit 1. Which of the following statements is true? Select one: a. Point A is more productive efficient than point B. b. Point A is as much productive efficient as point B. c. Point A is less productive efficient than point B. d. None of the above.

B

Refer to Exhibit 4. Which graph depicts a flood that influences the production of both good X and good Y? Select one: a. (1) b. (2) c. (3) d. (4) e. none of the above

B

Refer to Exhibit 4. Which graph depicts the result of deporting illegal immigrants from the country? Select one: a. (1) b. (2) Correct c. (3) d. (4) e. none of the above

B

Refer to Exhibit 5. Which of the following sentences is false regarding point G? Select one: a. unattainable if the economy's PPF is PPF2. b. inefficient if the economy's PPF is PPF2. c. attainable if the economy's PPF is PPF1. d. inefficient if the economy's PPF is PPF1. e. none of the above

B

Refer to Exhibit 8. 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 92 on the economics exam is __________ points on the statistics exam. Select one: a. 75 b. 14 c. 11 d. 24

B

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that the PPF has shifted, this could be due to Select one: 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 e. d and c f. b and d

B

Which of the following statements is true? Select one: a. A society is productive inefficient when it produces at a point inside (below) its PPF. b. A society is productive inefficient when it does not produce the maximum output with its given resources and technology. c. A society is productive efficient when it can produce more of one good without giving up some of another good. d. both a and b e. all of the above

D

Productive inefficiency implies that Select one: a. it is possible to obtain gains in one area without losses in another. b. it is impossible to obtain gains in one area without losses in another. c. there are too many resources. d. there are too few resources. e. none of the above

A

Refer to Exhibit 1. A movement from point A to point D Select one: a. could happen through economic growth. b. is necessarily a movement from a productive efficient point to a productive inefficient point. c. is a movement from a productive efficient point to another productive efficient point. d. is necessarily a movement from a productive inefficient point to another productive inefficient point.

A

Refer to Exhibit 1. The opportunity cost of moving from point B to A is Select one: a. 10,000 units of butter. b. 20,000 units of butter. c. 20,000 units of guns. d. 10,000 units of guns.

A

Refer to Exhibit 6. For Maria, the opportunity cost of producing one unit of good B is ___________ unit(s) of good A. Select one: a. 3.00 b. 1.00 c. 10.00 d. 0.50

A

Refer to Exhibit 6. Who has the comparative advantage in the production of good A? Select one: a. Maria b. Maya c. Both Maria and Maya d. Neither Maria nor Maya

A

The PPF for two goods (X and Y) is a downward-sloping curve that is bowed outward If Select one: a. increasingly more units of good Y must be given up as each successive unit of good X is produced. b. increasingly less units of good Y must be given up as each successive unit of good X is produced. c. The same units of good Y must be given up as each successive unit of good X is produced. d. None of the above

A

Which of the following statements is true? Select one: a. Because of the law of increasing opportunity costs, as more cars are produced, the opportunity cost of each additional car is greater than for the preceding unit. b. Because of the law of increasing opportunity costs, as more cars are produced, the opportunity cost of each additional car is less than for the preceding unit. c. Because of the law of increasing opportunity costs, as more cars are produced, the opportunity cost of each additional car is the same as for the preceding unit. d. Because of the law of increasing opportunity costs, people pay lower prices for cars the higher the costs of producing cars.

A

Which of the following statements is true? Select one: a. Technological improvement in the production of both goods shifts the PPF rightward. b. Technological improvement in the production of only one good does not changes the PPF. c. A decrease in unemployment shifts the PPF rightward. d. a and c

A

Which of the following statements is true? Select one: a. Not all points on a PPF have the same efficiency. b. Moving from one point to another on a PPF incurs a tradeoff c. unemployment of resources is shown by shifting the PPF inward d. a PPF can shift only outward

B

A person has a comparative advantage in the production of a good when he can produce the product at a(n) ________ opportunity cost compared to another person. Select one: a. higher b. increasing c. lower d. equal

C

Refer to Exhibit 4. Which graph depicts a technological breakthrough in the production of good X only? Select one: a. (1) b. (2) c. (3) d. (4) e. none of the above

C

Refer to Exhibit 7. Who has the comparative advantage in the production of good A? Select one: a. Alex b. Adam c. Neither Alex nor Adam d. Both Alex and Adam

C

Refer to Exhibit 8. Jose has one evening in which to prepare for two exams and can employ one of two possible strategies. The opportunity cost of receiving an 89 on the statistics exam is ___________ points on the economics exam. Select one: a. 75 b. 17 c. 24 d. 89

C

Which of the following statements is false? Select one: a. If there are only two goods, guns and butter, it is possible to produce more of both goods through economic growth. b. If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive inefficient point. c. If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive efficient point. d. If there are only two goods, guns and butter, producing more of one means producing less of the other if the economy is currently operating at a productive efficient point.

C

Which of the following statements is true? Select one: a. A PPF can shift outward. b. A PPF can shift inward. c. a and b. d. A PPF can shift neither inward nor outward.

C

Which of the following statements is true? Select one: a. Points that lie inside (or below) the PPF are unattainable. b. Points that lie inside (or below) the PPF are attainable and productive efficient. c. Points that lie inside (or below) the PPF are attainable but productive inefficient. d. Points that lie inside (or below) the PPF are attainable and neither productive efficient nor productive inefficient.

C

Which of the following statements is true? Select one: a. The point where the PPF intersects the vertical axis is attainable and productive efficient. b. The point where the PPF intersects the horizontal axis is attainable and productive efficient. c. a and b. d. The point where the PPF intersects the vertical axis is attainable and neither productive efficient nor productive inefficient.

C

Which of the following statements is false? Select one: a. Points that lie outside (or beyond) the PPF are attainable. b. Points that lie outside (or beyond) the PPF are efficient. c. Points that lie outside (or beyond) the PPF are inefficient. d. All of the above. e. a and b

D

A PPF is more likely to be a downward-sloping curve that is bowed outward than a downward-sloping straight line because most resources are Select one: a. used efficiently. b. relatively cheap at low levels of output. c. used to produce consumption goods. d. None of the above.

D

Refer to Exhibit 1. If the economy is at point C, it follows that Select one: a. more guns and more butter could be produced with available resources than are currently being produced. b. more butter could be produced with available resources than are currently being produced, keeping the production of guns at the same level (30). c. only more butter can be produced with available resources than are currently being produced. d. a and b e. a and c.

D

Refer to Exhibit 6. For Maria, the opportunity cost of producing one unit of good A is ___________ unit(s) of good B. Select one: a. 2.00 b. 1.00 c. 10.00 d. 0.33

D

Refer to Exhibit 6. If Maria and Maya each specialize in the good in which she has a comparative advantage and then engage in trade, ____________________ can consume a combination of goods that lies beyond her PPF. Select one: a. Maria, but not Maya, b. Maya, but not Maria, c. neither Maria nor Maya d. both Maria and Maya

D

Refer to Exhibit 7. Who has the comparative advantage in the production of good B? Select one: a. Alex b. Adam c. Both Alex and Adam d. Neither Alex nor Adam

D

The constant opportunity cost of producing additional unit of TV is two cell phones. This means Select one: a. that it takes more resources to produce a TV than a cell phone. b. that PPF for these two products is a straight line. c. that for every TV produced, a constant number of cell phones is forfeited. d. all of the above.

D

Two country (A and B) are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods, but country A produces half the output of both types of goods compared to country B. It follows that Select one: a. country A's PPF lies further to the right than country B's PPF. b. country A has a smaller population than country B. c. country A has a bigger population than country B. d. country B's PPF lies further to the right than country A's PPF. e. country A is efficient and country 2 is inefficient.

D

Which of the following statements is false? Select one: a. A productive efficient society produces at a point on its PPF. b. A productive efficient society can produce more of one good only by giving up some of another good. c. A productive efficient society cannot produce unlimited amounts of a good. d. A productive efficient society does not need to make choices. e. b and c

D

Which of the following statements is true? Select one: a. Economic growth causes the PPF to shift leftward. b. Economic growth causes the PPF to remain constant. c. An economy is productive efficient if it produces more goods and services in each successive year. d. An economy is productive efficient if it produces maximum output with given resources and technology. e. An economy is productive efficient if it produces enough output so that no one lives in poverty.

D

Which of the following statements is true? Select one: a. Productive inefficiency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available. b. Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. c. Productive inefficiency implies that it is impossible to produce more of one good and no less of another. d. Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.

D

Productive efficiency implies that Select one: a. all consumers' wants are satisfied. b. the country is producing in a point on its PPF c. the attainable region is greater than the unattainable region. d. gains are impossible in one area without losses in another. e. b and d f. all of the above

E

Refer to Exhibit 2. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of Select one: a. a decrease in resources. b. an economic growth. c. an improvement in technology. d. both a and c e. both b and c

E

Refer to Exhibit 3. Given available resources and technology, this economy can produce 65,000 television sets and 40,000 fax machines only if it chooses to Select one: a. have an equal distribution of goods. b. operate at both points B and C, simultaneously. c. produce at point C. d. produce at point D. e. none of the above

E

Refer to Exhibit 3. The economy is currently operating at point F. The opportunity cost of moving to point C is approximately Select one: a. zero televisions. b. 20 televisions. c. zero fax machines. d. 20 fax machines. e. a and c. f. b and d.

E

Refer to Exhibit 4. Which graph depicts the result of an increase in the unemployment rate? Select one: a. (1) b. (2) c. (3) d. (4) e. none of the above

E

The economy is currently on its production possibilities frontier (PPF). A politician says that it is possible to get more of everything---more infrastructure, more schools, more national defense, more spending on social programs, and so on. The politician is Select one: a. correct if he is assuming a rightward-shifting PPF. b. incorrect if he is assuming a rightward-shifting PPF. c. incorrect if he is assuming a PPF that does not change. d. correct if he is assuming a PPF that does not change. e. a and c

E

Which of the following statements is true? Select one: a. A PPF is bowed outward as a result of increasing opportunity costs. b. A PPF is bowed outward as a result of constant opportunity costs. c. A PPF is a straight line as a result of decreasing opportunity costs. d. A PPF is a straight line as a result of constant opportunity costs. e. a and d f. b and c

E

Which of the following statements is true? Select one: a. In a world of efficiently used scarce resources, more of one good necessarily means less of some other good. b. The law of increasing opportunity costs assumes that all people have the same ability to produce goods. c. Efficiency implies that it is impossible to get more of one good without getting less of another. d. Even if a country has unemployed resources, it can still be operating on its production possibilities frontier (PPF). e. a and c

E