Question :
31.Ceteris paribus, if North Korea increases the size of its : 1232900
31.Ceteris paribus, if North Korea increases the size of its military, then:
A. Its production possibilities curve will shift outward.
B. Its production possibilities curve will shift inward.
C. Its production of consumer goods will increase.
D. Its production of consumer goods will decrease.
32.Assuming the level of resources and technology are constant, if France decreases the size of its military, then:
A. Its’ production possibilities curve will shift outward.
B. Its’ production possibilities curve will shift inward.
C. Its’ production of consumer goods can increase.
D. Its’ production of consumer goods must decrease.
Figure 1.1 – Production Possibilities and Opportunity Costs: Linear Model versus Non-Linear Model In the linear production possibilities model, we assume each of five equally-sized parcels of land contributes the same to the production of food and timber: 6 units of timber or 3 units of food.By contrast, in the non-linear model, we will assume that there are five different types of land in equal-sized plots and that each plot may contribute as follows to the production of
33.Assuming all parcels of land are the same, when all land is in use, one more unit of timber produced will require…
A. Two more units of food produced
B. Five fewer units of food produced
C. One-half fewer units of food produced
D. Two fewer units of food produced
34.Assuming all parcels of land are the same, there is a constant trade-off in the production of timber and food. When all land is in use, one more unit of food produced will require…
A. Two more units of timber produced
B. Five fewer units of timber produced
C. One-half fewer units of timber produced
D. Two fewer units of timber produced
35.Assuming all land is equally productive in either use, how much output of each type will be produced with 2/5 of the land in timber production and 3/5 of the land in food production?
A. 12 units of timber and 9 units of food
B. 9 units of timber and 12 units of food
C. 18 units of timber and 9 units of food
D. 9 units of timber and 18 units of food
36.Now assume that there are five different types of land in equally-sized parcels:A. Great farmland/Terrible timberlandB. Good farmland/Poor timberlandC. Moderate farmland/Moderate timberlandD. Poor farmland/Good timberlandE. Terrible farmland/Great timberlandStarting from point A on the production possibilities line where 30 units of timber and no food is produced, suppose that we choose to produce more food by moving one parcel of land out of timber production and into food production. In order to minimize the opportunity cost of producing more food, the first plot to be re-purposed should be…
A. A.
B. B.
C. C.
D. D.
E. E.
37.In the model where we assume that all parcels of land are the same, the relationship between food and timber produced when all land is in use is:
A. Linear and inverse.
B. Direct and linear.
C. Inverse and nonlinear.
D. Direct and nonlinear.
38.In the model where we assume that all five parcels of land are NOT the same, the relationship between food and timber produced when all land is in use is:
A. Linear and inverse.
B. Direct and linear.
C. Inverse and nonlinear.
D. Direct and nonlinear.
39.The most desirable attainable mix of output for society:
A. Consists of the entire production possibilities curve.
B. Consists of a point on the production possibilities curve.
C. Consists of a point outside the production possibilities curve.
D. Occurs at the origin of the x- and y-axes on which the production possibilities curve is graphed.
40.In attempting to answer the WHAT question, a society seeks to:
A. Produce the optimal mix of output.
B. Exploit its workers in order to produce more output.
C. Produce more military goods so that the citizens will be safe.
D. Distribute an equal amount of goods to all citizens.
