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21) A medical clinic has 10 workers. Each worker can

Question : 21) A medical clinic has 10 workers. Each worker can : 1417860

 

 

21) A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. The production possibilities frontier of this firm would show

A) increasing opportunity cost.

B) decreasing opportunity cost.

C) constant opportunity cost.

D) zero opportunity cost.

E) infinite opportunity cost.

 

22) A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. The opportunity cost of one more unit of medical services is

A) 2 units of secretarial services.

B) 5 units of secretarial services.

C) 0.4 units of secretarial services.

D) 2.5 units of secretarial services

E) dependent on the level of services.

 

23) A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. One day, the firm decides it would like to produce 10 units of medical services and 30 units of secretarial services. This output level is

A)               efficient.

B) unattainable.

C) inefficient.

D) costless.

E) is attainable if the firm reduces the number of its workers.

24) A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. One day, the firm decides it would like to produce 16 units of medical services and 5 units of secretarial services. This output level is

A)               efficient.

B) unattainable.

C) inefficient.

D) costless.

E) attainable and efficient.

 

25) The bowed-out (concave) shape of a production possibilities frontier

A) is due to the equal usefulness of resources in all activities.

B) is due to capital accumulation. 

C) is due to technological change.

D) reflects the existence of increasing opportunity cost.

E) reflects the existence of decreasing opportunity cost.

 

26) If opportunity costs are increasing, then the production possibilities frontier

A) will be bowed out and have a positive slope.

B) will be positively sloped.

C) will be linear and have a negative slope.

D) will be bowed out and have a negative slope.

E) reflects the fact that available resources are equally useful in all production activities.

 

27) The fact that resources are not equally productive in all activities

A) implies that a production possibilities frontier will be bowed outward.

B) implies that gains from specialization and trade are unlikely.

C) follows from the law of demand.

D) implies a linear production possibilities frontier.

E) implies that an economy should not produce certain goods.

28) If additional units of any good could be produced at a constant opportunity cost, the production possibilities frontier would be

A) bowed inward.

B) bowed outward.

C) positively sloped.

D) negatively sloped.

E) linear.

 

29) The existence of increasing opportunity cost

A) explains why specialization is frequently useful.

B) explains why resources are scarce.

C) explains the bowed-out shape of the production possibilities frontier.

D) follows from the existence of property rights.

E) explains why some societies produce inside their production possibilities frontier.

Use the figure below to answer the following questions.

 

Figure 2.1.2

 

30) Refer to the production possibilities frontier in Figure 2.1.2. If 6 units of X are currently being produced, then

A) 40 units of Y cannot be produced unless production of X is decreased.

B) 40 units of Y cannot be produced unless production of X is increased.

C) 60 units of Y can be produced with some resources not fully used.

D) 50 units of Y must be produced, regardless of resource utilization.

E) 50 units of Y can be produced if all resources are used and assigned to the task for which they are the best match.

 

 

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