Question : 3.5   Chapter Figures 1) The figure above shows a production possibilities : 1240774

3.5   Chapter Figures

1) The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods cannot be produced with the current resources and technology?

A) 2 million cell phones and 13 million DVDs

B) 4 million cell phones and 4 million DVDs

C) 1 million cell phones and 14 million DVDs

D) 3 million cell phones and 5 million DVDs

E) 5 million cell phones and no DVDs

2) The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods are efficient?

A) 2 million cell phones and 13 million DVDs

B) 5 million cell phones and 15 million DVDs

C) no cell phones and 15 million DVDs

D) 4 million cell phones and 4 million DVDs

E) None of these combinations is efficient.

3) The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when ________ cell phones and ________ DVDs. are produced.

A) 3 million; 9 million

B) 2 million; 9 million

C) 3 million; 8 million

D) 4.5 million; no

E) 5 million; 15 million

4) The figure above shows a production possibilities frontier. In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?

A) 0.25 cell phones

B) 0.5 cell phones

C) 1 cell phone

D) 4 cell phones

E) zero

5) The figure above shows a production possibilities frontier. In the figure, when the economy moves from point D to point C, the opportunity cost of producing one more DVD ________, and when it moves from point C to D, the opportunity cost of producing one more cell phone ________.

A) increases; increases

B) increases; decreases

C) decreases; decreases

D) decreases; increases

E) increases; remains the same

6) The figure above shows a production possibilities frontier. In the figure, when the economy moves from point C to point B, what is the opportunity cost of a DVD?

A) 0.5 cell phones

B) 2 cell phones

C) 0.5 million cell phones

D) 2 million cell phones

E) zero

7) The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy produced 4 million cell phones using the resources efficiently, the PPF would

A) expand, but not as far as shown in the figure.

B) not expand.

C) expand farther than shown in the figure.

D) expand along the vertical axis and not along the horizontal axis.

E) expand evenly along both axes.

8) The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year’s PPF that is above point K, the next year’s PPF would

A) shift outward along the horizontal axis farther than the new PPF shown in the figure.

B) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.

C) shift outward along the vertical axis, not along the horizontal axis.

D) shift inward along the horizontal axis.

E) shift inward along the vertical axis.

9) The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year’s PPF that is below point K, the next year’s PPF would

A) shift outward along the horizontal axis farther than the new PPF shown in the figure.

B) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.

C) shift outward along the vertical axis, not along the horizontal axis.

D) shift inward along the horizontal axis.

E) shift inward along the vertical axis.