Question : 31. Consider a society facing the production possibilities curves in the : 1378979

31. 

Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF1 to PPF3?

A. More workers

B. Better printing press technology

C. A desire to read more books

D. Better sewing technology

32. 

Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF3 to PPF1?

A. A tornado

B. More people

C. A desire to read more books

D. Better sewing technology

33.An increase in productivity as a result of a new technology would cause the production possibilities frontier to:

A. shift in.

B. shift out.

C. not move until society chose to move it.

D. become more meaningful in policy decisions.

34.Hurricane Katrina destroyed much of New Orleans and other parts of the South. Which of the following statements is true?

A. The hurricane caused the production possibilities frontier of the United States to shift in.

B. The hurricane caused the production possibilities to increase, since it created a lot of work to rebuild the city and surrounding areas.

C. The hurricane caused the production possibilities frontier of the United States to shift out.

D. None of these statements is true.

35.Trade:

A. increases total production, which can benefit everyone involved.

B. increases total production, which benefits only the more wealthy nation.

C. decreases total production across nations, but increases it for some.

D. decreases total production across nations, but benefits everyone because they are individually more productive.

36.Trade:

A. only benefits the stronger nation.

B. only benefits the weaker nation.

C. can benefit everyone involved.

D. can only benefit one party of the trade, but we cannot say which without more information.

37.Trade:

A. involves a winner and a loser.

B. often hurts both parties in the long run.

C. is a zero sum proposition.

D. can benefit both parties.

38.If a wealthy nation like the United States trades with a poorer, less developed nation like Cambodia, then it is likely true that:

A. the United States is taking advantage of Cambodia and is the only beneficiary to the trade.

B. Cambodia is pressured to enter trade and not benefiting at all.

C. both the United States and Cambodia can benefit from trading.

D. the United States is being charitable and not benefiting from the trade at all.

39.Suppose that, given the same number of workers, the United States can produce five times as many computers or 10 times as many airplanes as Mexico. Which of the following statements is true?

A. The United States has an absolute advantage in the production of computers, and Mexico has an absolute advantage in the production of airplanes.

B. The United States has an absolute advantage in the production of airplanes, and Mexico has an absolute advantage in the production of computers.

C. The United States has an absolute advantage in the production of both airplanes and computers.

D. Mexico has an absolute advantage in the production of both airplanes and computers.

40.Suppose that, given the same number of workers, the United States can produce two times as many TVs or 20 times as many potatoes as Chile. Which of the following statements is true?

A. Chile should trade with the United States for potatoes because the United States has an absolute advantage in the production of potatoes.

B. Chile should trade with the United States for TVs because the United States has an absolute advantage in the production of potatoes.

C. The United States can benefit from trading TVs but not potatoes with Chile.

D. None of these statements is necessarily true.