11) If a country currently producing inside its production possibilities
11) If a country is currently producing inside its production possibilities curve
A) it can increase the production of both goods by putting unemployed resources to work.
B) it can increase the production of one of the goods only if it reduces the production of the other good.
C) it is experiencing efficient production of one good but not the other.
D) None of the above are correct.
12) If an economy produces only steel and wheat, a new fertilizer will
A) cause the production of wheat to increase at every point on a production possibilities curve but not affect the production of steel, that is the curve moves outward on the wheat axis only.
B) cause the production of both wheat and steel to increase at every point along the production possibilities curve, that is the curve moves outward on both the wheat axis and the steel axis.
C) not affect the production of either wheat or steel.
D) cause the production of steel to increase at every point along the production possibilities curve but not affect the production of wheat, that is the curve moves outward on the steel axis only.
13) In order for a production possibilities curve to shift to the right, which of the following must occur?
A) government involvement
B) increasing consumer wants
C) economic growth
D) reductions in the supply of resources
14) An improvement in technology will shift the production possibilities curve
A) to the left.
B) along the curve.
D) to the right.
15) The production possibilities curve (PPC) illustrates economic growth by a(n)
A) bowed-out shape of the PPC.
B) outward shift of the PPC.
C) inward shift of the PPC.
D) movement along the PPC.
16) Economic growth appears on a production possibilities curve as
A) the curve shifting out away from the origin.
B) the curve shifting in toward the origin.
C) a change in the slope of the curve.
D) the points outside the production possibilities curve.
17) A production possibilities curve will shift inward
A) when the unemployment rate increases.
B) when production is inefficient.
C) when resources are expanding.
D) when a war destroys the capital goods of a country.
18) Generally, if a nation produces more consumer goods than capital goods
A) more of all goods may be produced in the future.
B) less of all goods may be produced in the future.
C) about the same amount of capital goods may be produced in the future as are being produced today.
D) society will have to forego future consumption of capital goods.
19) The use of goods and services for personal satisfaction is known as
A) the law of increasing relative cost.
C) comparative advantage.
20) A country that must reduce current consumption to increase future consumption possibilities
A) must be allocating resources inefficiently.
B) must be producing along the production possibilities curve.
C) must be producing outside the production possibilities curve.
D) must not have private ownership of property.