Question : 71) An improvement in technology will cause the A) production possibility : 1381037

71) An improvement in technology 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, Japan and Malaysia. Japan devotes a smaller portion of its production to capital. All other things equal, which of the following statements is most likely true?

A) Japan is a poorer country than Malaysia.

B) Japan will move up its production possibility curve faster than Malaysia.

C) Malaysia is producing inside its production possibility frontier, whereas Japan is producing at a point on its production possibility frontier.

D) Malaysia’s production possibility frontier will shift up and out farther and faster than Japan’s.

73) The gap between rich and poor countries

A) has decreased over time because poor countries can more easily devote resources to capital production.

B) has increased over time because poor countries find it difficult to devote resources to capital production.

C) has remained constant over time because technological advances can be easily shared among nations.

D) has remained constant over time because the rate of capital production has remained constant in rich and poor nations.

74) An economy produces capital goods and consumer goods. This economy is operating at a point on its production possibility frontier associated with a small amount of capital goods and a large 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 capital 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) The economic problem can best be stated as

A) How can the economy improve technology so as to shift the production possibility frontier up and to the right?

B) Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce?

C) Given the fact that the economy is inefficient, how much and what type of government intervention should be used to improve the efficiency of the economy?

D) What is the best rate of economic growth for a society?

76) Related to the Economics in Practice on p. 28: Which one of the following occurs when an individual enters the paid work force?

A) The opportunity cost of time for housework increases, because time spent on housework could be spent on money-earning activities.

B) The opportunity cost of time for housework increases, because money earned at a job can allow individuals to pay someone to do household chores that the individuals used to do themselves.

C) The opportunity cost of time for housework decreases, because increased earning power makes individuals less likely to do their own housework.

D) The opportunity cost of time for housework decreases, because as more people enter the work force, businesses have greater incentives to develop innovations that make housework more efficient.

77) Related to the Economics in Practice on p. 28: How did the introduction of the microwave in 1960 affect the market for frozen food?

A) It encouraged people to leave the work force by making cooking easier and less time-consuming.

B) It reduced the opportunity cost of eating frozen food by decreasing the amount of time required to prepare frozen meals.

C) It increased the financial cost of alternative methods of food preparation, such as conventional ovens.

D) It made frozen foods more appealing by increasing the variety of meals that could be frozen and reheated.

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 food compared to people in the United States.

A) a significantly higher percentage

B) about the same percentage

C) a slightly lower percentage

D) approximately 50 percent less

79) Related to the Economics in Practice on p. 39: The results of the survey conducted by Esther Duflo and Abhijit Banerjee found that in extremely poor societies,

A) household choice plays no role in consumption decisions.

B) all consumption decisions are made by the government.

C) household choice even plays a role in non-food-related consumption decisions.

D) the only consumption decisions in which household choice plays a role is in the consumption of biological needs such as food.