Question : 40) An inward shift of a nation’s production possibilities frontier : 1387300

 

 

40) An inward shift of a nation’s production possibilities frontier can occur due to

A) a reduction in unemployment.

B) a natural disaster like a hurricane or bad earthquake.

C) a change in the amounts of one good desired.

D) an increase in the labor force.

 

41) An outward shift of a nation’s production possibilities frontier represents

A) economic growth.

B) rising prices of the two goods on the production possibilities frontier model.

C) an impossible situation.

D) a situation in which a country produces more of one good and less of another.

 

 

42) Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontier

A) shifting outward.

B) shifting inward.

C) becoming steeper.

D) becoming flatter.

 

 

43) Without an increase in the supplies of factors of production, how can a nation achieve economic growth?

A) by producing more high-value goods and less of low-value goods

B) through technological advancement which enables more output with the same quantity of resources

C) by lowering the prices of factors of production

D) by increasing the prices of factors of production

 

44) Which of the following would shift a nation’s production possibilities frontier outward?

A) discovering a cheap way to convert sunshine into electricity

B) an increase in demand for the nation’s products

C) a decrease in the unemployment rate

D) a law requiring workers to retire at age 50

 

 

Figure 2-4

 

Figure 2-4 shows various points on three different production possibilities frontiers for a nation.

 

45) Refer to Figure 2-4.  A movement from X to Y

A) could be due to a change in consumers’ tastes and preferences.

B) could occur because of an influx of immigrant labor.

C) is the result of advancements in food production technology only, with no change in the technology for plastic production.

D) is the result of advancements in plastic production technology only, with no change in food production technology.

 

46) Refer to Figure 2-4. A movement from Y to Z

A) represents an increase in the demand for plastic products.

B) could occur because of general technological advancements.

C) is the result of advancements in food production technology.

D) is the result of advancements in plastic production technology.

 

 

47) Refer to Figure 2-4. Consider the following events:

a.an increase in the unemployment rate

b.a decrease in a nation’s money supply

c.a war that kills a significant portion of a nation’s population

 

Which of the events listed above could cause a movement from Y to W ?

A) a, b and c

B) a and b only

C) a and c only

D) a only

E) c only

 

 

48) Refer to Figure 2-4. Consider the following movements:

a.from point V to point W

b.from point W to point Y

c.from point Y to point Z

 

Which of the movements listed above represents economic growth?

A) a, b, and c

B) b and c only

C) a only

D) b only

 

49) Refer to Figure 2-4. Consider the following events:

a.a decrease in the unemployment rate

b.general technological advancement

c.an increase in consumer wealth

 

Which of the events listed above could cause a movement from V to W ?

A) a only

B) a and b only

C) b and c only

D) a, b, and c