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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*.