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Chapter 2 Thinking Like an Economist

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Question;117. The production possibilities frontier is a graph that shows the;various combinations of output that an economy;a.;should;produce.;b.;wants to;produce.;c.;can;produce.;d.;demands.;118. When constructing a production possibilities frontier, which of the;following assumptions is not made?;a.;The;economy produces only two goods or two types of goods.;b.;Firms;produce goods using factors of production.;c.;The;technology available to firms is given.;d.;The;quantities of the factors of production that are available are increasing;over the relevant time period.;119. Any point on a country's production possibilities frontier;represents a combination of two goods that an economy;a.;will;never be able to produce.;b.;can;produce using all available resources and technology.;c.;can;produce using some portion, but not all, of its resources and technology.;d.;may be;able to produce in the future with more resources and/or superior technology.;120. Which of the following is not an assumption of the;productions possibilities frontier?;a.;A;country produces only two goods or types of goods.;b.;Technology;does not change.;c.;The;amount of available resources does not change.;d.;There is;a fixed quantity of money.;121. Which of the following is a correct statement about production;possibilities frontiers?;a.;An;economy can produce only on the production possibilities frontier.;b.;An;economy can produce at any point inside or outside a production possibilities;frontier.;c.;An;economy can produce at any point on or inside the production possibilities;frontier, but not outside the frontier.;d.;An;economy can produce at any point inside the production possibilities;frontier, but not on or outside the frontier.;122. Where can an economy not produce?;a.;inside;its production possibilities frontier;b.;on its;production possibilities frontier;c.;outside;its production possibilities frontier;d.;at the;endpoints of its production possibilities frontier;123. An economic outcome is said to be efficient if the economy is;a.;using;all of the scarce resources it has available.;b.;conserving;on resources, rather than using all available resources.;c.;getting;all it can get from the scarce resources it has available.;d.;able to;produce more than what is currently being produced without additional;resources.;124. Production is efficient if the economy is producing at a point;a.;on the;production possibilities frontier.;b.;outside;the production possibilities frontier.;c.;on or;inside the production possibilities frontier.;d.;inside;the production possibilities frontier.;125. If an economy is producing efficiently, then;a.;there is;no way to produce more of one good without producing less of another good.;b.;it is;possible to produce more of both goods without increasing the quantities of;inputs that are being used.;c.;it is;possible to produce more of one good without producing less of another good.;d.;it is;not possible to produce more of any good at any cost.;126. An economy?s production of two goods is efficient if;a.;all;members of society consume equal portions of the goods.;b.;the;goods are produced using only some of society?s available resources.;c.;it is;impossible to produce more of one good without producing less of the other.;d.;the;opportunity cost of producing more of one good is zero.

 

Paper#55184 | Written in 18-Jul-2015

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