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21) Whenever a society forgoes current consumption to invest in capital goods,

A) it will have less to consume next year.

B) it will be easier for that society to consume less in the future because people will become accustomed to less.

C) that society can consume more in the future.

D) it will be forced to produce fewer capital goods in the future.

22) At a point on a production possibilities curve, opportunity cost of more capital goods today is

A) fewer capital goods in the future.

B) fewer consumer goods in the future.

C) fewer consumer goods today.

D) more unemployed resources in the future.

 

23) When an economy sacrifices production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will

A) shift outward.

B) shift inward.

C) become a straight line.

D) shift about in random fashion.

 

24) Capital goods

A) are a special type of consumption goods.

B) are consumed because they enhance the enjoyment consumers obtain from other goods and services.

C) are goods used to make consumer goods and services.

D) lead to inward shifts of a production possibilities curve.

 

25) If a country increased the production of its capital goods, then

A) the more consumption of goods we can have today.

B) the less consumption we can have today, but we will have more in the future.

C) the more unemployed resources there will be in the future.

D) the more unemployed resources there are today.

26) The opportunity cost of more consumption of goods today is

A) lower consumption of goods in the future.

B) fewer capital goods in the future.

C) more capital goods today.

D) more unemployment both today and in the future.

 

27) Whenever productive resources are used to make capital goods

A) society is not producing efficiently.

B) society is giving up current consumption.

C) the production possibilities curve becomes flatter.

D) absolute advantage occurs.

 

28) The more society consumes today

A) the more it consumes next year.

B) the harder it will be to consume less in the future because people will find it hard to adjust to less.

C) the less society can consume in the future.

D) the easier it will be to consume less in the future.

 

29) The trade-off between current consumption and the production of capital goods is also a trade-off between

A) the future cost for capital goods and future cost of consumption goods.

B) having fewer needs and more wants in the future.

C) satisfying the needs of the poor and the wants of the wealthy.

D) current consumption and future consumption.

30) To have more consumer goods in the future, we must

A) produce more capital goods today.

B) lower current income.

C) get government involved in the production process.

D) stop producing all goods today.

 

 

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