Question : 121) A production possibilities frontier with a ________ shape indicates : 1244960

121) A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced.

A) linear

B) bowed inward

C) bowed outward

D) perfectly horizontal

122) Increasing opportunity cost along a bowed out production possibilities frontier occurs because

A) of inefficient production.

B) of ineffective management by entrepreneurs.

C) some factors of production are not equally suited to producing both goods or services.

D) of the scarcity of factors of production.

123) The slope of a production possibilities frontier measures the ________ of producing one more unit of a good.

A) marginal revenue

B) total revenue

C) marginal cost

D) opportunity cost

124)  Increasing marginal opportunity cost implies that

A) the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

B) the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts.

C) that rising opportunity costs makes it inefficient to produce beyond a certain quantity.

D) the law of scarcity.

125)  If opportunity costs are ________, the production possibilities frontier would be graphed as a negatively sloped straight line.

A) decreasing

B) increasing

C) negative

D) constant

Figure 2-9

126) Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?

A) Graph A

B) Graph B

C) Graph C

D) either Graph A or Graph B

E) either Graph B or Graph C

127) Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation. Which of the graphs in Figure 2-3 represent his production possibilities frontier?

A) Graph A

B) Graph B

C) Graph C

D) either Graph A or Graph B

E) either Graph B or Graph C

Table 2-4

Production Choices for Dina’s Diner

Choice

Quantity of Sliders Produced

Quantity of Hot Wings Produced

    A

       80

         0

     B

       60

       25

     C

       40

       50

     D

       20

       75

     E

         0

     100

128) Refer to Table 2-4. Assume Dina’s Diner only produces sliders and hot wings. A combination of 40 sliders and 50 hot wings would appear

A) along Dina’s production possibilities frontier.

B) inside Dina’s production possibilities frontier.

C) outside Dina’s production possibilities frontier.

D) at the vertical intercept of Dina’s production possibilities frontier.

129) Refer to Table 2-4. Assume Dina’s Diner only produces sliders and hot wings. A combination of 60 sliders and 25 hot wings would appear

A) along Dina’s production possibilities frontier.

B) inside Dina’s production possibilities frontier.

C) outside Dina’s production possibilities frontier.

D) at the vertical intercept of Dina’s production possibilities frontier.

130) Refer to Table 2-4. Assume Dina’s Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear

A) along Dina’s production possibilities frontier.

B) inside Dina’s production possibilities frontier.

C) outside Dina’s production possibilities frontier.

D) at the vertical intercept of Dina’s production possibilities frontier.