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31) Refer to the production possibilities frontier in Figure 2.1.2.
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Question : 31) Refer to the production possibilities frontier in Figure 2.1.2. : 1417861

31) Refer to the production possibilities frontier in Figure 2.1.2. Suppose that 50 units of Y are currently being produced. Then

A) 7 units of X are being produced.

B) 6 units of X can be produced if all resources are used and assigned to the task for which they are the best match.

C) 9 units of X can be produced if all resources are used and assigned to the task for which they are the best match.

D) resources are not being fully utilized.

E) 6 units of X are being produced.

32) Refer to the production possibilities frontier in Figure 2.1.2. At point A, the opportunity cost of producing 3 more units of X

A) is 30 units of Y.

B) is 3 units of X.

C) is 20 units of Y.

D) is 10 units of Y.

E) cannot be determined from the diagram.

33) Refer to the production possibilities frontier in Figure 2.1.2. At point A, the opportunity cost of increasing production of Y to 80 units is

A) 10 units of Y.

B) 80 units of Y.

C) 2 units of X.

D) 3 units of X.

E) 1 unit of X.

34) Refer to the production possibilities frontier in Figure 2.1.2. At point C, the opportunity cost of producing one more unit of X is

A) 1 unit of Y.

B) 1 unit of X.

C) 8 units of X.

D) 20 units of X.

E) 20 units of Y.

35) Refer to the production possibilities frontier in Figure 2.1.2. At point C, what is the opportunity cost of increasing the production of Y from 20 to 50 units?

A) 6 units of X

B) 2 units of X

C) 8 units of X

D) 20 units of Y

E) 30 units of Y

36) Consider the production possibilities frontier in Figure 2.1.2, and assume that everything that is produced is also consumed. Which of the following statements is false?

A) Resources are not equally useful in all activities.

B) Points inside the frontier indicate unused or misallocated resources.

C) Starting at point A, an increase in the production of Y will shift the frontier outward.

D) The opportunity cost of producing Y increases as production of Y increases.

E) The opportunity cost of producing X increases as production of X increases.

37) As we increase the production of X, we find we must give up larger and larger amounts of Y per unit of X. Select the best statement.

A) This illustrates increasing opportunity cost.

B) As a result, we should not specialize in the production of X.

C) The production possibilities frontier for X and Y is a straight line.

D) Good Y will be more highly regarded by consumers than good X.

E) We must be inside the production possibilities frontier.

Use the figure below to answer the following questions.

Figure 2.1.3

38) Figure 2.1.3 illustrates Mary's production possibilities frontier. If Mary wants to move from point B to point C,

A) it will be necessary to improve technology.

B) it will be necessary to increase the accumulation of capital.

C) it will be necessary to give up some of good X to obtain more of good Y.

D) it will be necessary to give up some of good Y to obtain more of good X.

E) she can accomplish this without any opportunity cost.

39) Figure 2.1.3 illustrates Mary's production possibilities frontier. If Mary wants to move from point D to point C,

A) it will be necessary to improve technology.

B) it will be necessary to increase the accumulation of capital.

C) it will be necessary to give up some of good X to obtain more of good Y.

D) it will be necessary to give up some of good Y to obtain more of good X.

E) she can accomplish this without any opportunity cost.

40) Refer to the production possibilities frontier in Figure 2.1.3. The opportunity cost of moving from C to B will be

A) greater than moving from D to C but less than moving from B to A.

B) less than moving from D to C but greater than moving from B to A.

C) the same as moving from D to C or moving from B to A.

D) greater than moving either from D to C or from B to A.

E) neither greater than moving from D to C nor moving from B to A.

Solution 5 (1 Ratings )

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Economics 1 Year Ago 33 Views