Question 1

With respect to a PPF for goods X and Y,productive efficiency implies that in order to produce more of good X there will be a reduction in production of good Y.

Accepted Answer

A) True 
 B)False

Question 2

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis

Accepted Answer

A)  is greater along curve I.
B)  is greater along curve II.
C)  is the same along both curves.
D)  cannot be compared for the two curves without more information.E) A) and B)
F) A) and C)

Question 3

With a constant opportunity cost between goods A and B,the PPF for goods A and B would

Accepted Answer

A)  be a straight line.
B)  be a bowed-outward line.
C)  be a bowed-inward line.
D)  not exist.E) All of the above
F) A) and B)

Question 4

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Accepted Answer

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) A) and B)
F) A) and C)

Question 5

If a production possibilities frontier (PPF) is concave outward,it follows that

Accepted Answer

A)  opportunity costs are constant between two goods.
B)  the opportunity cost (of producing the good on the horizontal axis) rises as more of the good is produced.
C)  the opportunity cost (of producing the good on the horizontal axis) falls as more of the good is produced.
D)  the opportunity cost (of producing the good on the horizontal axis) first rises and then falls as more of the good is produced.
E)  none of the aboveF) C) and E)
G) B) and C)

Question 6

The law of increasing opportunity cost results from the varying ability of resources to adapt to the production of different goods and it helps to explain why production possibilities curves are typically bowed outward.

Accepted Answer

A) True 
 B)False

Question 7

Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods,but country 1 produces twice the output of both types of goods compared to country 2.It follows that

Accepted Answer

A)  country 1's PPF lies further to the right than country 2's PPF.
B)  country 1 has a smaller population than country 2.
C)  country 1 has a bigger population than country 2.
D)  country 1 is efficient and country 2 is inefficient.
E)  none of the aboveF) A) and E)
G) D) and E)

Question 8

Exhibit 2-3 1 is the relevant production possibilities frontier,society may move to PPF2 as a result of A) an increase in resources. B) a decrease in resources. C) an increase in technology. D) both a and c E) both b and c" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-3.If PPF1 is the relevant production possibilities frontier,society may move to PPF2 as a result of

Accepted Answer

A)  an increase in resources.
B)  a decrease in resources.
C)  an increase in technology.
D)  both a and c
E)  both b and cF) C) and D)
G) C) and E)

Question 9

Suppose Andrea is taking just two courses and is at a point on her PPF of grades for those two courses.Now this PPF shifts inward and Andrea moves to a point on the new PPF.Which of the following would be impossible after her PPF has shifted inward compared to before the PPF shifted?

Accepted Answer

A)  both of her grades to fall
B)  both of her grades to rise
C)  one of her grades to rise and the other grade to fall
D)  one of her grades to fall while the other grade stays constantE) B) and D)
F) B) and C)

Question 10

If resources are better suited toward the production of one good than toward another good,then the PPF for those two goods is

Accepted Answer

A)  a straight line.
B)  bowed outward.
C)  upward sloping.
D)  any of the aboveE) A) and D)
F) C) and D)

Question 11

Exhibit 2-7 
-Points inside (below) the production possibilities frontier (PPF) are

Accepted Answer

A)  unattainable.
B)  attainable,but productive inefficient.
C)  preferable to points that lie on the PPF.
D)  attainable and productive efficient.E) C) and D)
F) A) and B)

Question 12

Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy.Give an example to help support your answer.

Accepted Answer

A technological advancement in one secto...

Exam 2: Production Possibilities Frontier Framework

Exhibit 2-7 -Points inside (below) the production possibilities frontier (PPF) are

Correct Answer
verified

Suppose Andrea is taking just two courses and is at a point on her PPF of grades for those two courses.Now this PPF shifts inward and Andrea moves to a point on the new PPF.Which of the following would be impossible after her PPF has shifted inward compared to before the PPF shifted?

Correct Answer
verified

Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy.Give an example to help support your answer.

Correct Answer
verified
A technological advancement in one secto...
View Answer

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Correct Answer
verified

The law of increasing opportunity cost results from the varying ability of resources to adapt to the production of different goods and it helps to explain why production possibilities curves are typically bowed outward.

Correct Answer
verified

With respect to a PPF for goods X and Y,productive efficiency implies that in order to produce more of good X there will be a reduction in production of good Y.

Correct Answer
verified

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF₁ is the relevant production possibilities frontier,society may move to PPF₂ as a result of

Correct Answer
verified

Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods,but country 1 produces twice the output of both types of goods compared to country 2.It follows that

Correct Answer
verified

If resources are better suited toward the production of one good than toward another good,then the PPF for those two goods is

Correct Answer
verified

If a production possibilities frontier (PPF) is concave outward,it follows that

Correct Answer
verified

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis

Correct Answer
verified

With a constant opportunity cost between goods A and B,the PPF for goods A and B would

Correct Answer
verified

Exam 2: Production Possibilities Frontier Framework

Exhibit 2-7 -Points inside (below) the production possibilities frontier (PPF) are

Correct AnswerverifiedShow Answer

Suppose Andrea is taking just two courses and is at a point on her PPF of grades for those two courses.Now this PPF shifts inward and Andrea moves to a point on the new PPF.Which of the following would be impossible after her PPF has shifted inward compared to before the PPF shifted?

Correct AnswerverifiedShow Answer

Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy.Give an example to help support your answer.

Correct AnswerverifiedA technological advancement in one secto...View AnswerShow Answer

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Correct AnswerverifiedShow Answer

The law of increasing opportunity cost results from the varying ability of resources to adapt to the production of different goods and it helps to explain why production possibilities curves are typically bowed outward.

Correct AnswerverifiedShow Answer

With respect to a PPF for goods X and Y,productive efficiency implies that in order to produce more of good X there will be a reduction in production of good Y.

Correct AnswerverifiedShow Answer

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF1 is the relevant production possibilities frontier,society may move to PPF2 as a result of

Correct AnswerverifiedShow Answer

Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods,but country 1 produces twice the output of both types of goods compared to country 2.It follows that

Correct AnswerverifiedShow Answer

If resources are better suited toward the production of one good than toward another good,then the PPF for those two goods is

Correct AnswerverifiedShow Answer

If a production possibilities frontier (PPF) is concave outward,it follows that

Correct AnswerverifiedShow Answer

Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis

Correct AnswerverifiedShow Answer

With a constant opportunity cost between goods A and B,the PPF for goods A and B would

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A technological advancement in one secto...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF₁ is the relevant production possibilities frontier,society may move to PPF₂ as a result of

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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