Question : 31) A bowed out production possibilities frontier shows A) that resources : 1238964

31) A bowed out production possibilities frontier shows

A) that resources are equally productive in all uses.

B) increasing opportunity cost.

C) that resources are not equally productive in all uses.

D) Both answers B and C are correct.

E) Both answers A and B are correct.

32) The opportunity cost of a good increases as more of it is produced because

A) there is no such thing as a free lunch.

B) resources are not equally productive in all activities.

C) producing more of a good requires additional resources.

D) the number of forgone alternatives also increases.

E) people want the good less as more is produced.

33) As an economy increasingly specializes in producing one good, the opportunity cost of that good increases. The opportunity cost increases because

A) resources are not equally productive in all activities.

B) what must be paid to resources increases.

C) human wants are virtually unlimited.

D) not all goods are equally valuable.

E) as more of a good is produced, the profit from its production must rise.

34) As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good?

A) It remains constant.

B) It decreases.

C) It increases.

D) It might increase, decrease, or remain constant depending on how much people value the additional units of the good.

E) None of these depicts what happens to opportunity cost.

35) When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost

A) increases.

B) decreases.

C) remains constant.

D) might increase, decrease, or remain constant depending on how much people value the additional units of the good.

E) cannot be predicted.

36) A bowed out PPF reflects which of the following ideas?

i.Increasing opportunity cost

ii.Resources are not equally productive in all activities.

iii.Prices of goods increase over time.

A) i only

B) i and ii

C) i and iii

D) ii and iii

E) i, ii, and iii

37) If there is increasing opportunity cost, then when moving downward on a production possibilities frontier, the opportunity cost of the good on the horizontal axis ________ as more of the good is produced.

A) increases and the PPF gets steeper

B) increases and the PPF gets flatter

C) decreases and the PPF gets steeper

D) decreases and the PPF gets flatter

E) does not change and the PPF gets steeper

38) A bowed out production possibility frontier shows that the

A) opportunity cost of a good is constant as more of the good is produced.

B) opportunity cost of a good decreases as more of the good is produced.

C) opportunity cost of a good increases as more of the good is produced.

D) opportunity cost relationship is linear.

E) opportunity cost of producing another good is negative.

39) Why does a nation experience increasing opportunity cost?

A) As the nation moves from a production point within the PPF to one on the PPF, opportunity costs increase.

B) As the nation moves from a production point within the PPF to another point also within the PPF, opportunity costs increase.

C) When the amount of resources increases, the opportunity cost of all goods and services increases.

D) Resources are not equally productive in producing different kinds of goods and services.

E) Because the nation cannot produce at the unattainable production points that lie beyond the PPF.

40) The fact of increasing opportunity cost when moving on the PPF means that

A) to increase the production of one product requires larger and larger sacrifices of the other good.

B) to decrease the production of one product requires smaller and smaller sacrifices of the other good.

C) to increase the production of one product requires smaller and smaller sacrifices of the other good.

D) when the government forces a movement from one point on the PPF to another point, no production is lost.

E) the PPF will be a negatively sloped straight line.