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Chapter 2 Thinking Like an Economist




Question;137. The opportunity cost of obtaining more of one good is shown on the;production possibilities frontier as the;a.;amount;of the other good that must be given up.;b.;market;price of the additional amount produced.;c.;amount;of resources that must be devoted to its production.;d.;number;of dollars that must be spent to produce it.;138. The bowed shape of the production possibilities frontier can be;explained by the fact that;a.;all;resources are scarce.;b.;economic;growth is always occurring.;c.;the;opportunity cost of one good in terms of the other depends on how much of;each good the economy is producing.;d.;the only;way to get more of one good is to get less of the other.;139. Economists believe that production possibilities frontiers are;often bowed because;a.;trade-offs;inevitably create unemployment.;b.;resources;are not completely adaptable.;c.;opportunity;costs are constant.;d.;of;improvements in technology.;140. On a bowed production possibilities frontier, as you move down;along the curve;a.;more of;one good must be given up to receive one unit of the other good.;b.;the;available production technology does not change.;c.;the;opportunity cost increases.;d.;All of;the above are correct.;141. When a production possibilities frontier is bowed outward, the;opportunity cost of producing an additional unit of a good;a.;increases;as more of the good is produced.;b.;decreases;as more of the good is produced.;c.;does not;change as more of the good is produced.;d.;may;increase, decrease, or not change as more of the good is produced.;142. Production possibilities frontiers are usually bowed outward. This;is because;a.;the more;resources a society uses to produce one good, the fewer resources it has;available to produce another good.;b.;it;reflects the fact that the opportunity cost of producing a good decreases as;more and more of that good is produced.;c.;of the;effects of technological change.;d.;resources;are specialized, that is, some are better at producing particular goods;rather than other goods.;143. Economists believe that production possibilities frontiers;a.;never;have a bowed shape.;b.;rarely;have a bowed shape.;c.;often;have a bowed shape.;d.;always;have a bowed shape.


Paper#55186 | Written in 18-Jul-2015

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