Econ in class #2

Refer to the table below. For these data the law of increasing opportunity costs is reflected in the fact that

Larger and larger amounts of capital goods must be sacrificed to get additional unirs of consumer goods.

Refer to the above table. For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods it must:

Use its resources more efficiently than the data in the table now indicate.

Refer to the tables. Opportunity costs are

increasing in both Duckistan and Herbania.

In constructing models, economists:

make simplifying assumptions

A production possibilities curve illustrates

scarcity

Refer to the tables. Opportunity costs of producing military goods are

smaller in Duckistan than Herbania.

Which of the following is not correct? A typical production possibilities curve

specifies how much of each product society should produce.

In drawing the production possibilities curve we assume that

technology is fixed.

Which of the following will not produce an outward shift of the production possibilities curve?

the reduction of unemployment

Refer to the above table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:

1/3 of a unit of capital goods.

Refer to the diagram. Starting at point A, the opportunity cost of producing each successive unit of tractor is

2, 4, y and 8 units of bread

Refer to the tables. Suppose that Duckistan and Herbania are each producing 14 units of civilian goods and 2 units of military goods. Then:

Duckistan is fully employing its resources, but Herbania is not

The typical production possibilities curve is

a downsloping line that is concave to the origin

If the production possibilities curve is a straight line:

economic resources are perfectly substitutable between the production of the two products.

The production possibilities curve illustrates the basic principle that:

if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.