Question : 71) A decrease in the stock of capital will cause : 1381328

 

71) A decrease in the stock of capital will cause the

A) production possibility frontier to shift outward.

B) production possibility frontier to shift inward.

C) economy to move down the production possibility frontier.

D) economy to move closer to its production possibility frontier.

 

72) Consider two countries, Estonia and Ukraine. Estonia devotes a larger portion of its production to capital. All other things equal which of the following statements is most likely true?

A) Estonia is a poorer country than Ukraine.

B) Estonia will move up its production possibility curve faster than Ukraine.

C) Estonia’s production possibility frontier will shift up and out farther and faster than Ukraine’s.

D) Ukraine is producing inside its production possibility frontier, whereas Estonia is producing at a point on its production possibility frontier.

 

73) The gap between rich and poor countries has ________ over time because poor countries find it difficult to devote resources to ________ production.

A) increased; capital

B) decreased; capital

C) remained constant; capital

D) remained constant; capital and consumer goods

 

74) An economy produces capital goods and consumer goods. This economy is operating at a point on its production possibility frontier associated with a large amount of capital goods and a small amount of consumer goods. This is most likely to be a

A) “poor” country because such a nation has difficulty devoting many resources to the production of consumer goods.

B) “rich” country because such a nation can afford to sacrifice.

C) country with a free market.

D) country with a command economy.

75) Given scarce resources, how societies go about deciding what to produce, how to produce it and for whom to produce best describes

A) decreasing opportunity costs.

B) the fallacy of composition.

C) Ockham’s razor.

D) the economic problem.

 

76) Related to the Economics in Practice on p. 28: Based on the increase in the number of women in the labor force over the past 50 years, the opportunity cost of preparing a home-cooked meal

A) decreased.

B) increased.

C) remained constant.

D) dropped to zero.

 

77) Related to the Economics in Practice on p. 28: One reason for the increase in sales of frozen foods from $1 billion in 1950 to $44 billion in 2012 is the

A) increased opportunity cost of cooking frozen meals.

B) decrease in the number of women in the labor force.

C) increased opportunity cost of preparing home-cooked meals.

D) decrease in popularity of the microwave oven.

 

78) Related to the Economics in Practice on p. 39: In the survey conducted by Esther Duflo and Abhijit Banerjee, the extremely poor were found to consume ________ of their budgets on weddings, funerals, and other festivals.

A) virtually none

B) less than 5 percent

C) almost 10 percent

D) over half

79) Related to the Economics in Practice on p. 39: In all societies, resources are limited relative to people’s demands, and there are ________ tradeoffs individuals face in rich countries versus poor countries.

A) fewer

B) large differences in the kinds of

C) virtually no differences in the types of

D) more important

 

 

 

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