41) The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are
A) points B and C.
B) points A, B, and C.
C) point E.
D) points A, B, C, and D.
E) points A and D.
42) The above figure shows the production possibility frontier for an economy. The point or points that are attainable are
A) points B and C.
B) points A, B, and C.
C) point E.
D) points A, B, C, and D.
E) points A and D.
43) The above figure shows the production possibility frontier for an economy. The point or points that are NOT attainable are
A) points B and C.
B) points A, B, and C.
C) point E.
D) points A, B, C, and D.
E) points A and D.
44) In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of
A) producing at a point that lies beyond the PPF.
B) zero opportunity cost.
C) opportunity benefit.
D) a free lunch.
E) a tradeoff.
45) As we move along the production possibilities frontier,
A) the production of one good increases as the production of the other good decreases.
B) the possibilities of tradeoffs diminish.
C) a tradeoff is not possible because nations need all goods.
D) more of both goods can be produced.
E) less of both goods can be produced.
46) Which of the following statements is correct?
A) If capital is idle, the economy is producing at its full potential.
B) The production possibilities frontier shows that there are no limits to production.
C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.
D) Any point on or within the PPF is production efficient.
E) None of the above answers is correct.
47) When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods
A) must increase.
B) must decrease.
C) must remain the same.
D) must change, but they might increase or decrease.
E) might increase if the nation can produce more efficiently.
48) The negative slope of the production possibilities frontier represents the idea
A) that free lunches are possible.
B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another.
C) of unemployment.
D) of inefficient production.
E) that prices rise as less is produced.
49) A movement from one point on a production possibilities frontier to another represents
A) a tradeoff.
B) a free lunch.
C) full employment of labor but not capital.
D) unemployment.
E) an advance in technology.
50) The saying "There's no such thing as a free lunch," applies
A) when there is some unemployment.
B) on the production possibilities frontier.
C) to unattainable combinations of goods and services.
D) when more of one good can be produced without decreasing production of another.
E) at all points inside the PPF.
