Smart book - Ch.2

The production possibilities frontier shows... A) all of the possible combinations of two outputs that can be produced using all available resources B) all of the possible combinations of two inputs that can be produced using all available resources C) the most likely possible combinations of two outputs that can be produced with ideal resources D) all the possible combinations of two inputs that can be used to produce outputs

A) all of the possible combinations of two outputs that can be produced using all available resources

Slope is the ... A) rate at which the y variable changes when the x variable changes B) rate at which the x variable changes when the y variable changes C) difference between the y variable and the x variable D) the sum of the y variable and the x variable

A) rate at which the y variable changes when the x variable changes

When opportunity costs are increasing, the production possibilities frontier is... A) horizontal B) convex C) up-sloping D) bowed in

B) convex

Assume that workers cannot all produce the same amount of each good. The opportunity cost of producing one good in terms of the other... A) decreases as more of a good is produced because skills vary among workers B) increases as more of a good is produced because skills vary among C) is constant as more of a good is produced because skills are similar among workers D) changes in an indeterminate way

B) increases as more of a good is produced because skills vary among

When the production possibilities frontier is convex, ... A) opportunity costs are constant B) opportunity costs are increasing C) there are no trade-offs D) there are no opportunity costs

B) opportunity costs are increasing

The first question economists use to break down problems: "what are the wants and constraints of those involved?" can be answered using the... A) production output frontier B) production possibilities frontier C) goods and possibilities frontier D) input and output frontier

B) production possibilities frontier

The opportunity cost of one good is... A) the amount of the both goods B) the amount of the other that must be given up C) the amount that both goods change D) the additional amount of that good

B) the amount of the other that must be given up

The production possibilities frontier shows all the possible combinations of outputs that can be produced using A) most resources B) all available resources C) all available outputs D) future technology

C) all available outputs

The PPF helps us answer the first economics' questoin: "What are the wants and constraints of those involved?", because it shows... A) the most likely possible combinations of inputs that can be produced with ideal resources B) all possible combinations of inputs that can be produced with ideal resources C) all possible combinations of outputs that can be produced with ideal resources D) the most likely possible combinations of outputs that can be produced with ideal resources

C) all possible combinations of outputs that can be produced with ideal resources

The slope of a function is constant when... A) the relationship is known B) the relationship is negative C) the relationship is positive D) the relationship is linear

D) the relationship is linear

The production possibilities frontier helps us answer the second economists' question: 'What are the trade-offs?", because ... A) there is no trade-off between the production of the two goods B) these is inefficiency along the production possibilities frontier C) there is efficiency along the production possibilities frontier D) there is a trade-off between the production of the two goods

D) there is a trade-off between the production of the two goods

True or False: Points inside the production possibilities frontier are achievable, but still make full use of all available resources.

False

Unlike the slope of a curve, the slope of a line is ______.

constant

The production possibilities frontier gives us a way to represent the ________ on production.

constraints

Points inside the production possibilities frontier are attainable and ______.

inefficient

Points ______ the PPF are inefficient while points ______ the PPF are efficient.

inside, on

Points that lie ______ the production possibilities frontier are unattainable

outside

In deterring the slope, the ______ is the change in the horizontal (x) direction, whereas the _____ is the change in the vertical (y) direction.

rise, run

The simple way to determine the slope is...

rise/run

The rise is the change in the ____ direction, whereas the run is the change in the ____ direction.

vertical, horizontal