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51) Refer to Table 2.1.2. In moving from combination B

Question : 51) Refer to Table 2.1.2. In moving from combination B : 1417863

 

 

51) Refer to Table 2.1.2. In moving from combination B to combination C, the opportunity cost of producing one additional unit of guns is

A) 2 kilograms of butter.

B) 1/2 kilogram of butter.

C) 6 kilograms of butter.

D) 1/6 kilogram of butter.

E) 3 kilograms of butter.

 

52) Refer to Table 2.1.2. According to this production possibilities frontier,

A) a combination of 6 kilograms of butter and 1 gun leaves some resources unused.

B) a combination of 0 butter and 4 guns is attainable.

C) resources are equally useful in all activities.

D) the opportunity cost of producing guns increases as more guns are produced.

E) the opportunity cost of producing guns decreases as more guns are produced.

Use the table below to answer the following questions.

 

Table 2.1.3

Production possibilities for a society that produces only two

goods — hockey sticks and maple leaves.

 

 

53) Refer to Table 2.1.3. In moving from combination C to combination B, the opportunity cost of producing one additional hockey stick is

A) 2 maple leaves.

B) 1/2 maple leaves.

C) 6 maple leaves.

D) 1/6 maple leaves.

E) 3 maple leaves.

 

Use the table below to answer the following question.

 

Table 2.1.4

 

 

54) Refer to Table 2.1.4. Complete the following sentence. The production possibilities frontier in the table shows

A) increasing opportunity cost.

B) learning-by-doing.

C) constant opportunity cost.

D) under-utilization of resources.

E) decreasing opportunity cost.

55) The slope of the production possibilities frontier curve indicates

A) opportunity cost.

B) comparative advantage.

C) absolute advantage.

D) marginal benefit.

E) preferences.

 

56) As we move down the bowed-out production possibilities frontier, opportunity cost

A) increases.

B) decreases.

C) remains constant.

D) initially decreases, then increases.

E) decreases but at an increasing rate.

 

Use the figure below to answer the following questions.

 

Figure 2.1.4

 

57) Refer to the production possibilities frontier in Figure 2.1.4. Which point is unattainable?

A) A

B) B

C) C

D) D

E) E

Use the figure below to answer the following question.

Figure 2.1.5

 

58) The graph in Figure 2.1.5 shows Sunland's PPF for food and sunscreen. Sunland faces ________ opportunity cost of food and ________ opportunity of sunscreen, which can be seen by the shape of the PPF.

A) an increasing; a decreasing

B) a constant; a constant

C) a decreasing; an increasing

D) an increasing; an increasing

E) a decreasing; a decreasing

Use the figure below to answer the following question.

Figure 2.1.6

 

59) Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food.  Point A is ________ and point B is ________. This PPF ________ illustrate scarcity because ________.

A) unattainable; attainable; does; because the firm cannot attain the points outside the frontier

B) attainable; unattainable; does not; the firm can produce any quantity it wants if it is willing to pay a high enough price

C) unattainable; attainable; does not; the firm can produce any quantity it wants if it is willing to pay a high enough price

D) attainable; unattainable; does; the firm cannot produce points outside the frontier and as the firm moves along the PPF, it cannot produce more dog biscuits without producing less cat food

E) attainable; unattainable; does not; it is downward sloping

 

60) When producing at a point of production efficiency, ________.

A) our choice of goods to produce can be either on or inside the production possibilities frontier

B) we can satisfy all our wants

C) the opportunity cost of producing goods other than those measured on the axes of the production possibilities frontier is zero

D) we face a tradeoff and incur an opportunity cost

E) resources are either unused or misallocated

61) Jane produces only corn and cloth. If her preferences for corn and cloth change, then ________.

A) her PPF becomes steeper

B) her PPF becomes flatter

C) her PPF becomes straighter

D) the world PPF shifts outward

E) her PPF does not change

 

 

 

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