Question : Figure 2-4 shows various points three different production possibilities frontiers : 1388107

 

 

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

 

 

48) Refer to Figure 2-4. A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor.

A) X to W

B) Y to X

C) V to W

D) W to X

 

 

49) Refer to Figure 2-4. A movement from ________ is the result of additional government restrictions on the pollution that results from plastic production.

A) X to V

B) X to W

C) Z to W

D) Z to Y

 

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

a.a decrease in the unemployment rate

b.an increase in technology with respect to both food and plastic production

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

 

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

A) a, b and c

B) a and b only

C) a and c only

D) b only

E) c only

 

 

51) 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 advancements in technology with respect to only plastic production?

A) a, b, and c

B) b and c only

C) b only

D) c only

 

 

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

a.an increase 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 Z to V ?

A) a only

B) a and b only

C) b and c only

D) a, b, and c

 

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

a.an increase in the patent protection period to 75 years

b.a hurricane that destroys a substantial portion of a nation’s capital stock

c.the implementation of a secure and enforceable property rights system

 

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

A) a only

B) a and b only

C) a and c only

D) b and c only

E) a, b, and c

 

 

54) The recession of 2007-2009 would most likely 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.

 

 

55) Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?

A) It is not possible to achieve this unless technology advances.

B) It can increase output without giving up another good by employing more resources.

C) It will have to increase resource supplies.

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

 

56) If society decides it wants more of one good and ________, then it has to give up some of another good and incur some opportunity costs.

A) technology advances

B) resources are underutilized

C) all resources are fully utilized

D) new resources are discovered

 

 

57) According to the production possibility model, if more resources are allocated to the production of physical and human capital, then all of the following are likely to happen except

A) fewer goods will be produced for consumption today.  

B) the production possibilities frontier will be shift outward in the future.

C) future economic growth is enhanced.

D) the country’s total production will fall.