Question : 21) Production efficiency occurs A) anywhere inside or the production : 1240792

 

 

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 cannot 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) Suppose that an economy is currently producing at a point that lies inside of its production possibilities set. Which of the following would best explain this circumstance?

A) The economy does not have enough resources to produce at a point closer to the frontier of the production possibilities set.

B) The prevailing level of technology prevents the economy from producing at a point closer to the frontier of the production possibilities set.

C) The economy is experiencing a high level of unemployment.

D) Any of the above statements could explain this situation.

E) None of the above statements could explain this situation.

26) Which of the following statements is correct?

A) An increase in productivity moves the economy from inside the production possibilities frontier to the frontier itself.

B) An increase in productivity shifts the economy from producing at a point on the production possibilities frontier to a point outside the production possibilities frontier.

C) An increase in unemployment shifts the economy further inside its production possibilities frontier.

D) An increase in unemployment shifts the economy from a point outside the production possibilities frontier back to the production possibilities frontier.

E) A reduction in unemployment shifts the entire production possibilities frontier outward.

 

27) 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 is correct.

 

28) 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.

29) 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

 

 

30) 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

31) 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.