Question : 31) Refer to Figure 2-3. Sergio Vignetto raises cattle and : 1244998

 

31) Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas. 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 C

E) either Graph B or Graph C

Table 2-1

Production choices for Tomaso’s Trattoria

Choice

Quantity of Pizzas Produced

Quantity of Calzones Produced

     A

       48

         0

     B

       36

       15

     C

       24

       30

     D

       12

       45

     E

         0

       60

 

32) Refer to Table 2-1. Assume Tomaso’s Trattoria only produces pizzas and calzones. A combination of 24 pizzas and 30 calzones would appear

A) along Tomaso’s production possibilities frontier.

B) inside Tomaso’s production possibilities frontier.

C) outside Tomaso’s production possibilities frontier.

D) at the horizontal intercept of Tomaso’s production possibilities frontier.

33) Refer to Table 2-1. Assume Tomaso’s Trattoria only produces pizzas and calzones. A combination of 36 pizzas and 30 calzones would appear

A) along Tomaso’s production possibilities frontier.

B) inside Tomaso’s production possibilities frontier.

C) outside Tomaso’s production possibilities frontier.

D) at the horizontal intercept of Tomaso’s production possibilities frontier.

34) Refer to Table 2-1. Assume Tomaso’s Trattoria only produces pizzas and calzones. A combination of 24 pizzas and 15 calzones would appear

A) along Tomaso’s production possibilities frontier.

B) inside Tomaso’s production possibilities frontier.

C) outside Tomaso’s production possibilities frontier.

D) at the horizontal intercept of Tomaso’s production possibilities frontier.

35) Refer to Table 2-1. Assume Tomaso’s Trattoria only produces pizzas and calzones. Tomaso faces ________ opportunity costs in the production of pizzas and calzones.

A) increasing

B) decreasing

C) constant

D) negative

Table 2-2

Production choices for Billie’s Bedroom Shop

Choice

Quantity of Pillows Produced

Quantity of Blankets Produced

A

36

0

B

27

7

C

18

14

D

9

21

E

0

28

 

36) Refer to Table 2-2. Assume Billie’s Bedroom Shop only produces pillows and blankets. A combination of 9 pillows and 21 blankets would appear

A) along Billie’s production possibilities frontier.

B) inside Billie’s production possibilities frontier.

C) outside Billie’s production possibilities frontier.

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

37) Refer to Table 2-2. Assume Billie’s Bedroom Shop only produces pillows and blankets. A combination of 9 pillows and 14 blankets would appear

A) along Billie’s production possibilities frontier.

B) inside Billie’s production possibilities frontier.

C) outside Billie’s production possibilities frontier.

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

38) Refer to Table 2-2. Assume Billie’s Bedroom Shop only produces pillows and blankets. A combination of 5 pillows and 21 blankets would appear

A) along Billie’s production possibilities frontier.

B) inside Billie’s production possibilities frontier.

C) outside Billie’s production possibilities frontier.

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

39) Refer to Table 2-2. Assume Billie’s Bedroom Shop only produces pillows and blankets. Billie faces ________ opportunity costs in the production of pillows and blankets.

A) increasing

B) constant

C) decreasing

D) negative

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.