Question : 41) The Great Depression of the 1930s with a large : 1267033

41) The Great Depression of the 1930s with a large number of workers and factories unemployed would be represented in a production possibilities frontier graph by

A) a point inside the frontier.

B) a point outside the frontier.

C) a point on the frontier.

D) an intercept on either the vertical or the horizontal axis.

42) Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

A) It can only achieve this with an advance in technology.

B) It can increase output without giving up another good.

C) It can only achieve this with an increase in resource supplies.

D) It will have to give up production and consumption of some other good.

43) If society decides it wants more of one good and all resources are fully utilized, then

A) it is unable to do this unless technology advances.

B) additional resource supplies will have to be found.

C) it has to give up some of another good and incur some opportunity costs.

D) more unemployment will occur.

44) According to the production possibility model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?

A) fewer goods will be produced for consumption today.  

B) the production possibilities frontier will be shift inward in the future 

C) future economic growth will decline.

D) the country’s total production will fall.

Figure 2-5

45) Refer to Figure 2-5.  If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?

A) 2 million tons of steel

B) zero

C) 9 million tons of paper

D) 16 million tons of paper

46) Refer to Figure 2-5.  If the economy is currently producing at point W, what is the opportunity cost of moving to point X?

A) 3 million tons of steel

B) 19 million tons of steel

C) 5 million tons of paper

D) 9 million tons of paper

47) In a report made to the U.S. Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, “Some additional traffic fatalities would be expected.” This statement suggests that

A) U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety.

B) there is a tradeoff between safety and fuel economy.

C) society should value safety more highly than fuel economy.

D) society should value fuel economy more highly than consumer safety because of the long term environment benefits generated by less gasoline use.

48) Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?

A) $13,500

B) $20,000

C) $24,000

D) $30,500

49) The opportunity cost of taking a semester-long economics class is

A) the cost of tuition and fees only.

B) the value of the time spent in the classroom.

C) zero because there is no admission charged if you are enrolled in the course.

D) equal to the highest value of an alternative use of the time and money spent on the class.

E) the knowledge and enjoyment you receive from attending the class.

Figure 2-6

General Motors recently approved for production the Cadillac Converj, an electric car based on its Chevy Volt. The Converj will feature a “Generation 1.5 Voltec” powertrain, with a hybrid engine that runs on a combination of electricity and gasoline. Assume GM chooses to produce both hybrid-engine vehicles and gasoline-engine vehicles for its Cadillac brand. Figure 2-6 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.

50) Refer to Figure 2-6.  Assume a technological advancement greatly reduces the cost to produce hybrid-engine vehicles. This is best represented by the

A) movement from E to F in Graph A.

B) movement from G to H in Graph B.

C) movement from K to L in Graph C.

D) movement from H to J in Graph B.