Question :
61) Refer to Figure 1-4. Growth in the country’s productive : 1384120
61) Refer to Figure 1-4. Growth in the country’s productive capacity is illustrated by
A) a point like D outside the boundary.
B) a movement from a point inside the boundary such as C to the boundary.
C) the movement between points on a given boundary.
D) a single point such as A on the boundary.
E) an outward shift of the boundary, for example from PPB1 to PPB2.
62) Refer to Figure 1-5. Suppose that the relevant production possibilities boundary is the one labelled B. This boundary implies that
A) the concept of opportunity cost is not at work in this economy.
B) the opportunity cost of producing either capital goods or consumer goods does not depend on how much of each good is produced.
C) consumer goods are preferred to capital goods.
D) in this society the resources are not efficiently employed.
E) capital goods are preferred to consumer goods.
63) Refer to Figure 1-5. Which production possibilities boundaries are consistent with increasing opportunity costs?
A) boundary A only
B) boundaries A and B
C) boundary C only
D) boundaries B and C
E) boundaries A, B, and C
64) Refer to Figure 1-5. Which production possibilities boundaries exhibit decreasing opportunity costs?
A) boundary B only
B) boundaries A and C
C) boundaries A and B
D) boundary A only
E) boundary C only
65) If there is always a three-for-one trade-off between the production of goods X and Y, then the production possibilities boundary for X and Y is
A) a downward-sloping curve convex to the origin.
B) semi-circular.
C) a downward-sloping straight line.
D) a downward-sloping straight line that is broken at one point.
E) a downward-sloping curve concave to the origin.
66) On a diagram of a production possibilities boundary, the concept of scarcity is illustrated by the
A) points on the boundary.
B) area within the boundary.
C) distance from the origin to the boundary.
D) negative slope of the boundary.
E) unattainable points outside the boundary.
67) On a diagram of a production possibilities boundary, the concept of opportunity cost is illustrated by the
A) distance from the origin to the boundary.
B) negative slope of the boundary.
C) boundary being concave to the origin.
D) unattainable points outside the boundary.
E) area bounded by the two axes and the boundary.
68) A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?
A) The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs.
B) The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs.
C) The straight-line boundary does not show scarcity, whereas the concave boundary does.
D) The straight-line boundary shows opportunity cost, whereas the concave boundary does not.
E) A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy.
69) Consider Canada’s production possibilities boundary. Suppose a scientific breakthrough leads to a lower-cost method of producing battery-operated cars in Canada. The likely effect would be to move Canada’s current production
A) to a point beyond its new production possibilities boundary.
B) to a point inside its new production possibilities boundary.
C) possibilities boundary outward.
D) possibilities boundary inward.
E) above the level of U.S. production.
70) Consider Canada’s production possibilities boundary. Suppose fire destroys many millions of hectares of valuable Canadian forest. The effect on the Canadian economy would be best illustrated by ________ the production possibilities boundary.
A) a movement inside
B) a movement along
C) a movement to a point beyond
D) a shift outward of
E) an inward shift of
