Question :
71) Consider Canada’s production possibilities boundary. During the nineteenth and : 1384121
71) Consider Canada’s production possibilities boundary. During the nineteenth and early twentieth centuries, millions of people immigrated to western Canada. The effect on the Canadian economy was to
A) move it beyond its new production possibilities boundary.
B) move it inside its new production possibilities boundary.
C) shift its production possibilities boundary inward.
D) shift its production possibilities boundary outward.
E) move it along an unchanged production possibilities boundary.
72) In recent years, several large Canadian-owned mining and resource companies have been sold to foreign owners. The immediate effect on Canada’s production possibilities boundary is
A) a shift outward.
B) a shift inward.
C) no change.
D) a movement along.
E) a movement to a point beyond the boundary.
73) A move from inside the production possibilities boundary to the boundary itself could be caused by
A) the employment of previously idle resources.
B) a reallocation of resources from military to civilian goods.
C) technological progress.
D) an increase in the labour supply.
E) an improvement in the government’s ability to control its spending.
74) Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes. A movement along the production possibilities boundary could be caused by
A) the employment of previously idle resources.
B) the reallocation of resources between military and civilian goods.
C) the growth of productive capacity.
D) an increase in the labour supply.
E) technological progress.
75) Refer to Figure 1-6. The levels of health and education expenditures at point C
A) are less than at point D.
B) are equal to those of point A and point B.
C) are more cost-effective than those at points A, B, and D.
D) could be achieved if the prices of health and/or education increased.
E) are not attainable with the government’s current budget.
76) Refer to Figure 1-6. If the government’s spending on health and education is given by point B, a move to point A must involve
A) less spending on health.
B) zero opportunity cost.
C) less spending on education.
D) less spending in total.
E) more spending on education.
77) Refer to Figure 1-6. Suppose the government’s current spending is shown by point D. In this case,
A) the government is not spending its total budget.
B) more education expenditures can be achieved only by sacrificing some health expenditures.
C) more health expenditures can be achieved only by sacrificing some education expenditures.
D) the government should spend its total budget so as to get to point B, since more health spending and more education spending are both clearly desirable.
E) the prices of education and health care have increased beyond the government’s ability to pay.
78) Consider the production possibilities boundary (PPB) of an economy. Economic growth is illustrated by
A) the negative slope of the PPB.
B) an outward shift of the PPB.
C) a movement onto the PPB.
D) a movement along the PPB.
E) the movement to a point outside of the PPB.
79) Suppose drought destroys many millions of acres of valuable Canadian farmland. The effect on the Canadian economy would be to move
A) it along its production possibilities boundary.
B) its production possibilities boundary inward.
C) it beyond its production possibilities boundary.
D) its production possibilities boundary outward.
E) None of the above. There would be no change in Canada’s production possibilities boundary.
80) Suppose there are only two goods produced in our economy—snowplows and helicopters. If there is always a two-for-one tradeoff between the production of these two goods (in terms of opportunity cost), then the production possibilities boundary between snowplows and helicopters is
A) a downward-sloping curve convex to the origin.
B) circular.
C) a downward-sloping straight line.
D) a downward-sloping straight line with slope equal to -1.
E) a downward-sloping curve concave to the origin.
