Question 1

Exhibit 2-1 
-Refer to Exhibit 2-1.The opportunity cost of moving from point B to A is

Accepted Answer

A)  10,000 units of butter.
B)  20,000 units of butter.
C)  50,000 units of guns.
D)  the maximum amount of butter that can be produced with available resources.E) All of the above
F) C) and D)

Question 2

Exhibit 2-2 2 is the relevant production possibilities frontier,then point __________ illustrates productive inefficiency. A) A B) B C) C D) J E) a,b,or c" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,then point __________ illustrates productive inefficiency.

Accepted Answer

A)  A
B)  B
C)  C
D)  J
E)  a,b,or cF) B) and E)
G) A) and D)

Question 3

The economy was at point A producing 100X and 200Y.It moved to point B where it produces 200X and 300Y.It follows that

Accepted Answer

A)  point A may have been a point below the economy's PPF,while point B may lie on the PPF.
B)  the economy's PPF could have shifted outward and point A was a point on the economy's old PPF.
C)  the economy has moved from one point on its PPF to another point on the same PPF.
D)  a or b
E)  a or cF) C) and D)
G) A) and B)

Question 4

Exhibit 2-5 
-Refer to Exhibit 2-5.As more fax machines are produced,the opportunity cost of producing them

Accepted Answer

A)  increases.
B)  decreases.
C)  remains constant.
D)  first decreases and then increases.E) All of the above
F) A) and D)

Question 5

Exhibit 2-1 
-According to the text,farming today in the U.S.is __________ productive compared to a century ago,resulting in there being __________ farmers today than at the turn of the previous century.

Accepted Answer

A)  about as;fewer
B)  about as;more
C)  much more;fewer
D)  much more;moreE) None of the above
F) A) and B)

Question 6

Economic growth causes the PPF to

Accepted Answer

A)  shift leftward.
B)  shift rightward.
C)  remain constant.
D)  go from a straight line to a curve.E) None of the above
F) B) and D)

Question 7

Exhibit 2-1 
-Refer to Exhibit 2-1.The movement from point A to point B is a movement from

Accepted Answer

A)  a productive efficient point to a productive inefficient point.
B)  a point with more guns and less butter to a point with more butter and even more guns.
C)  a productive efficient point to another productive efficient point.
D)  a productive inefficient point to a productive efficient point.E) None of the above
F) C) and D)

Question 8

Exhibit 2-5 
-Refer to Exhibit 2-5.The opportunity cost of moving from point C to point B is

Accepted Answer

A)  15,000 televisions.
B)  15,000 fax machines.
C)  10,000 televisions.
D)  20,000 fax machines.E) A) and B)
F) A) and C)

Question 9

A PPF can

Accepted Answer

A)  shift outward but not inward.
B)  shift inward but not outward.
C)  shift inward or outward.
D)  shift neither inward nor outward.E) A) and C)
F) All of the above

Question 10

Explain what productive efficiency means.Describe how productive efficiency is represented by a PPF.

Accepted Answer

An economy is producing efficiently if i...

Question 11

Exhibit 2-6 
-Refer to Exhibit 2-6.Which graph depicts the result of an increase in the number of illegal immigrants entering the country?

Accepted Answer

A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
E)  none of the aboveF) A) and D)
G) C) and E)

Question 12

Which scenario below most accurately describes the process by which a technological change can affect employment patterns across industries?

Accepted Answer

A)  A technological advance makes it possible to produce more of good X with less labor.As a result,labor is released from producing good X.Some of this labor ends up producing goods Y and Z.
B)  A technological advance makes it possible to produce less of good X with less labor.As a result,labor is released from producing good X.Some of this labor ends up producing good Y.
C)  A technological advance makes it possible to produce more of good X with more labor.As a result,more labor is needed to produce good X.There is less labor available to produce goods Y and Z.
D)  A technological advance makes it possible to produce more of good X with less labor.As a result,labor becomes more important to the production of good X.More labor ends up producing good X.
E)  none of the aboveF) A) and B)
G) A) and C)

Question 13

If increasingly more units of good Y must be given up as each successive unit of good X is produced,then the PPF for these two goods is

Accepted Answer

A)  a downward-sloping straight line.
B)  circular.
C)  an upward-sloping curve.
D)  a downward-sloping curve that is bowed outward.
E)  a downward-sloping curve that is bowed inward.F) None of the above
G) A) and B)

Question 14

Michael can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.Vernon can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.It follows that

Accepted Answer

A)  Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y.
B)  Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X.
C)  Neither Michael nor Vernon has a comparative advantage in producing X.
D)  Neither Michael nor Vernon has a comparative advantage in producing Y.
E)  There is not enough information to answer the question.F) C) and D)
G) A) and B)

Question 15

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

Accepted Answer

A)  a gain of resources.
B)  a loss of resources.
C)  technological improvement in the production of both goods.
D)  a new law that interferes with economic efficiency.E) B) and D)
F) B) and C)

Question 16

Exhibit 2-2 2 is the relevant production possibilities frontier,then point __________ is unattainable. A) A B) G C) D D) J" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,then point __________ is unattainable.

Accepted Answer

A)  A
B)  G
C)  D
D)  JE) A) and B)
F) C) and D)

Question 17

The PPF between goods X and Y will be a downward-sloping

Accepted Answer

A)  straight line if increasing opportunity costs exist.
B)  straight line if decreasing opportunity costs exist.
C)  curve that is bowed inward if increasing opportunity costs exist.
D)  straight line if constant opportunity costs exist.E) All of the above
F) A) and B)

Question 18

A PPF is a straight line as a result of

Accepted Answer

A)  constant opportunity costs.
B)  increasing opportunity costs.
C)  decreasing opportunity costs.
D)  scarcity.
E)  choice.F) A) and D)
G) C) and D)

Question 19

Exhibit 2-3 1 is the relevant production possibilities frontier,PPF2 may depict A) economic growth. B) an increase in resources. C) an increase in technology. D) both b and c E) all of the above" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 2-3.If PPF1 is the relevant production possibilities frontier,PPF2 may depict

Accepted Answer

A)  economic growth.
B)  an increase in resources.
C)  an increase in technology.
D)  both b and c
E)  all of the aboveF) A) and E)
G) None of the above

Question 20

A decrease in the quantity of resources available causes a movement down along a given PPF.

Accepted Answer

A) True 
 B)False

Exam 2: Production Possibilities Frontier Framework

Exhibit 2-6 -Refer to Exhibit 2-6.Which graph depicts the result of an increase in the number of illegal immigrants entering the country?

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Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF.Assuming that the PPF has not shifted,this could be due to

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Exhibit 2-5 -Refer to Exhibit 2-5.As more fax machines are produced,the opportunity cost of producing them

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Exhibit 2-1 -Refer to Exhibit 2-1.The movement from point A to point B is a movement from

Correct AnswerverifiedShow Answer

The economy was at point A producing 100X and 200Y.It moved to point B where it produces 200X and 300Y.It follows that

Correct AnswerverifiedShow Answer

Exhibit 2-1 -According to the text,farming today in the U.S.is __________ productive compared to a century ago,resulting in there being __________ farmers today than at the turn of the previous century.

Correct AnswerverifiedShow Answer

Economic growth causes the PPF to

Correct AnswerverifiedShow Answer

A PPF can

Correct AnswerverifiedShow Answer

Which scenario below most accurately describes the process by which a technological change can affect employment patterns across industries?

Correct AnswerverifiedShow Answer

Exhibit 2-1 -Refer to Exhibit 2-1.The opportunity cost of moving from point B to A is

Correct AnswerverifiedShow Answer

A PPF is a straight line as a result of

Correct AnswerverifiedShow Answer

Exhibit 2-2 -Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,then point __________ is unattainable.

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Exhibit 2-5 -Refer to Exhibit 2-5.The opportunity cost of moving from point C to point B is

Correct AnswerverifiedShow Answer

A decrease in the quantity of resources available causes a movement down along a given PPF.

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Michael can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.Vernon can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.It follows that

Correct AnswerverifiedShow Answer

The PPF between goods X and Y will be a downward-sloping

Correct AnswerverifiedShow Answer

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF1 is the relevant production possibilities frontier,PPF2 may depict

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Explain what productive efficiency means.Describe how productive efficiency is represented by a PPF.

Correct AnswerverifiedAn economy is producing efficiently if i...View AnswerShow Answer

Exhibit 2-2 -Refer to Exhibit 2-2.If PPF2 is the relevant production possibilities frontier,then point __________ illustrates productive inefficiency.

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If increasingly more units of good Y must be given up as each successive unit of good X is produced,then the PPF for these two goods is

Correct AnswerverifiedShow Answer

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Exhibit 2-1 -According to the text,farming today in the U.S.is productive compared to a century ago,resulting in there being farmers today than at the turn of the previous century.

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Exhibit 2-2 -Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,then point __________ is unattainable.

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Exhibit 2-3 -Refer to Exhibit 2-3.If PPF₁ is the relevant production possibilities frontier,PPF₂ may depict

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An economy is producing efficiently if i...
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Exhibit 2-2 -Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,then point __________ illustrates productive inefficiency.

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