Question : 21) Production efficiency occurs A) anywhere inside or the production : 1228162

 

 

21) Production efficiency occurs

A) anywhere inside or on the production possibilities frontier.

B) when the total cost of production is minimized.

C) at all points on the production possibilities frontier.

D) at only one point on the production possibilities frontier.

E) at all points inside the production possibilities frontier.

 

22) When production efficiency does NOT occur,

i.an economy is producing at a point within its PPF.

ii.there are unemployed resources.

iii.allocative efficiency can not occur.

A) i only

B) i and ii

C) iii only

D) i and iii

E) i, ii, and iii

23) If there is unemployment in an economy, then the

A) production possibilities frontier will shift inwards.

B) economy is operating at an unattainable point.

C) production possibilities frontier will shift outwards.

D) economy is producing at a point inside the production possibilities frontier.

E) production possibilities frontier must be bowed inward.

 

24) If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will

A) shift leftward.

B) shift rightward.

C) not shift because the society moves from one point on the frontier to a point inside the frontier.

D) not shift because the society moves from a point inside the frontier to a point on the frontier.

E) not shift because the society moves from one point on the frontier to a point outside the frontier.

 

25) A point on the production possibilities frontier reflects an

A) attainable point with full employment of all resources.

B) attainable point without full employment of all resources.

C) unattainable point with full employment of all resources.

D) unattainable point without full employment of all resources.

E) None of the above answers are correct.

26) Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of _________ reflects ____________

A) 500 books and 1000 tables; an inefficient but attainable point.

B) 1000 books and 500 tables; an efficient point.

C) 1000 books and 1000 tables; a free lunch.

D) 500 books and 500 tables; an attainable and efficient point.

E) 1000 books and 1500 tables; a free lunch.

 

27) Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are true?

i)Production of 700 books and 400 tables is attainable but inefficient.

ii)Production of 1000 books and 600 tables is unattainable.

iii)Production of 500 books and 1000 tables is inside the frontier.

A) i and ii

B) i, ii and iii

C) i and iii

D) ii and iii

E) i only

 

 

 

28) The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable?

A) 0 loaves of bread and 800 books

B) 100 loaves of bread and 800 books

C) 200 loaves of bread and 800 books

D) 300 loaves of bread and 200 books

E) 0 loaves of bread and 0 books

29) The table above shows a production possibilities frontier for an economy. If the economy tried to produce a combination of 250 loaves of bread and 800 books,

A) there is some unemployment.

B) there is full employment.

C) the tradeoff between bread and books is inefficient.

D) it cannot produce this combination because it lacks enough resources or technology.

E) it is enjoying a free lunch.

 

 

30) The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and 4 million gallons of ice cream is

A) unattainable.

B) attainable and production efficient.

C) attainable and production inefficient.

D) unattainable and production efficient.

E) More information is needed to determine if the point is attainable or not.