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/ Homework Answers / Economics / 91) In the above figure, the opportunity cost of moving

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91) In the above figure, the opportunity cost of moving from point D to point C is

A) 20 guitars.

B) 50 ukuleles.

C) 55 guitars.

D) 25 ukuleles.

92) In the above figure, the opportunity cost of moving from point D to point E is

A) 75 guitars.

B) 55 guitars.

C) 100 ukuleles.

D) 100 guitars.

 

93) In the above figure, the opportunity cost of moving from point A to point C is

A) 50 guitars.

B) 0 guitars.

C) 25 guitars.

D) 50 ukuleles.

 

94) In the above figure, the production of 75 ukuleles and 75 guitars is

A) efficient production.

B) inefficient production.

C) impossible production.

D) full employment production.

 

95) In the above figure, the production of 25 guitars and 25 ukuleles is

A) efficient production.

B) inefficient production.

C) impossible production.

D) not possible since production always occurs along the PPC.

96) In the above figure, as more ukuleles are produced, the opportunity cost in terms of guitars is

A) decreasing.

B) increasing.

C) constant.

D) zero.

 

97) An outward bowed production possibilities curve illustrates

A) inefficient production.

B) the law of increasing additional cost.

C) a lack of scarcity.

D) zero opportunity cost of moving from inefficient production to currently unobtainable production.

 

98) All of the following are assumptions of the production possibilities curve EXCEPT

A) resources are fully employed.

B) there is a fixed time period.

C) there is a fixed level of technology.

D) there is a fixed demand for the products.

 

99) Why is efficiency desirable?

A) It results in an equal distribution of income.

B) It results in zero unemployment.

C) It makes best use of the finite resources we have.

D) It is the most politically popular solution.

100) The law of increasing additional cost exists because

A) resources are not perfectly adaptable to both production processes.

B) the demand for the product increases.

C) the cost of resources of the products increase.

D) the cost of resources of the products decrease.

 

 

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