Question : 51) A free lunch (the absence of a tradeoff) when : 1241451

51) A free lunch (the absence of a tradeoff) when the production of a good is increased is possible for the entire economy only if

A) less of some product is produced.

B) prices are decreased.

C) prices are increased.

D) resources are used inefficiently.

E) there is a movement along the PPF.

52) A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents

A) a tradeoff.

B) a free lunch.

C) full employment of labor but not capital.

D) unemployment of labor but not capital.

E) an infinite opportunity cost.

53) A reason the production possibilities frontier exists is

A) unlimited resources and technology.

B) scarcity of resources.

C) scarcity of resources and unlimited technology.

D) unemployment.

E) that people’s wants are unlimited.

54) The production possibilities frontier is a graph showing the

A) exact point of greatest efficiency for producing goods and services.

B) tradeoff between free lunches.

C) maximum combinations of goods and services that can be produced.

D) minimum combinations of goods and services that can be produced.

E) resources available for the economy’s production use.

55) The production possibilities frontier is a boundary that separates

A) the combinations of goods that can be produced from the combinations of services.

B) attainable combinations of goods and services that can be produced from unattainable ones.

C) equitable combinations of goods and services that can be produced from inequitable ones.

D) fair combinations of goods and services that can be consumed from unfair ones.

E) affordable production points from unaffordable points.

56) Points inside the PPF are all

A) unattainable and have fully employed resources.

B) attainable and have fully employed resources.

C) unattainable and have some unemployed resources.

D) attainable and have some unemployed resources.

E) unaffordable.

57) During a time of high unemployment, a country can increase the production of one good or service

A) without decreasing the production of something else.

B) but must decrease the production of something else.

C) and must increase the production of something else.

D) by using resources in the production process twice.

E) but the opportunity cost is infinite.

58) Moving along the production possibilities frontier itself illustrates

A) the existence of tradeoffs.

B) the existence of unemployment of some factors of production.

C) the benefits of free lunches.

D) how free lunches can be exploited through trade.

E) how tradeoffs need not occur if the economy is efficient.

59) The production possibilities frontier illustrates which of the following economic ideas?

A) efficiency

B) tradeoffs

C) opportunity cost

D) all of the above

E) none of the above

60) Points on the PPF are all

A) unattainable and have fully employed resources.

B) free lunches.

C) inefficient.

D) attainable and have some unemployed resources.

E) production efficient.