Question : 50) The figure above illustrates a small country’s production possibilities : 1226372

 

 

50) The figure above illustrates a small country’s production possibilities frontier. Based on the figure, we can tell that the nation’s resources are

A) equally productive in all tasks because the slope is negative.

B) equally productive in all tasks because the production possibilities frontier is bowed out.

C) not equally productive in all tasks because the slope is negative.

D) not equally productive in all tasks because the production possibilities frontier is bowed out.

E) unlimited because the slope is negative and the PPF is bowed out.

51) The figure above illustrates a small country’s production possibilities frontier. Moving from point A to point B, the per unit opportunity cost of a VCR is ________ per VCR.

A) 2 computers

B) 4/3 of a computer

C) 100 computers

D) 1/2 of a computer

E) 1 VCR

 

52) The figure above illustrates a small country’s production possibilities frontier. Moving from point C to point B, the per unit opportunity cost of computers is ________ per computer.

A) 4 VCRs

B) 5/4 of a VCR

C) 4/5 of a VCR

D) 1/4 of a VCR

E) 1 computer

53) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to

A) decrease SUV production by 1 million.

B) decrease SUV production by 3 million.

C) decrease SUV production by 4 million.

D) decrease compact car production by 3 million.

E) acquire more resources and/or more advanced technology.

 

54) The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of

A) 1 million SUVs.

B) 3 million SUVs.

C) 4 million SUVs.

D) 3 million compact cars.

E) 0 because the gain in compact cars exceeds the loss in SUVs.

55) The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.

B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.

C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.

D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.

E) More information is needed to determine how the two opportunity costs compare.

 

56) Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must

A) take the inverse.

B) multiply by the total amount produced of the second good.

C) divide by the total amount produced of the second good.

D) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.

E) None of the answers is correct.

 

57) While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is

A) 1/2.

B) 1/4.

C) 2.

D) 4.

E) an amount that cannot be calculated without more information.

58) The opportunity cost of producing more of one good on a production possibilities frontier is

A) a dollar amount.

B) a ratio of quantities.

C) a ratio of prices.

D) equal to the area inside the production possibilities frontier.

E) a theoretical concept which cannot be measured.

 

59) The opportunity cost of one more slice of pizza in terms of sodas is the

A) number of pizza slices we have to give up in order to get one extra soda.

B) number of sodas we have to give up in order to get one extra pizza slice.

C) total number of sodas that we have divided by the total number of pizza slices that we have.

D) total number of pizza slices that we have divided by the total number of sodas that we have.

E) price of a pizza slice minus the price of a soda.

 

60) Moving between two points on a PPF, a country gains 6 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is

A) 3 trucks.

B) 6 automobiles – 3 trucks.

C) 2 trucks.

D) 1/2 of a truck.

E) 1 automobile.

61) Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is

A) 4 laptops.

B) 8 desktops.

C) 1 desktop.

D) 2 laptops.

E) 1/2 of a laptop.

 

62) A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional

A) cans of soup is increasing.

B) cans of soup is decreasing.

C) cans of soup remains unchanged.

D) ink pens is increasing.

E) More information is needed to determine what happens to the opportunity cost.

 

63) Moving along a country’s PPF, a reason opportunity costs increase is that

A) unemployment decreases as a country produces more and more of one good.

B) unemployment increases as a country produces more and more of one good.

C) technology declines as a country produces more and more of one good.

D) some resources are better suited for producing one good rather than the other.

E) technology must advance in order to produce more and more of one good.

 

64) Increasing opportunity cost exists

A) in the real world.

B) as long as there is high unemployment.

C) only in theory but not in real life.

D) for a country but not for an individual.

E) inside the PPF but not on the PPF.