131.Whichofthefollowingisnotanassumptionoftheproductionspossibilitiesfrontier? a.Acountryproducesonlytwogoodsortypesofgoods. b.Technologydoesnotchange. c.Theamountofavailableresourcesdoesnotchange. d.Thereisafixedquantityofmoney. 132.Whichofthefollowingisacorrectstatementaboutproductionpossibilitiesfrontiers? a.Aneconomycanproduceonlyontheproductionpossibilitiesfrontier. b.Aneconomycanproduceatanypointinsideoroutsideaproductionpossibilitiesfrontier. c.Aneconomycanproduceatanypointonorinsidetheproductionpossibilitiesfrontier,butnotoutsidethefrontier. d.Aneconomycanproduceatanypointinsidetheproductionpossibilitiesfrontier,butnotonoroutsidethefrontier. 133.Wherecananeconomynotproduce? a.insideitsproductionpossibilitiesfrontier b.onitsproductionpossibilitiesfrontier c.outsideitsproductionpossibilitiesfrontier d.attheendpointsofitsproductionpossibilitiesfrontier 134.Aneconomicoutcomeissaidtobeefficientiftheeconomyis a.usingallofthescarceresourcesithasavailable. b.conservingonresources,ratherthanusingallavailableresources. c.gettingallitcangetfromthescarceresourcesithasavailable. d.abletoproducemorethanwhatiscurrentlybeingproducedwithoutadditionalresources. 135.Productionisefficientiftheeconomyisproducingatapoint a.ontheproductionpossibilitiesfrontier. b.outsidetheproductionpossibilitiesfrontier. c.onorinsidetheproductionpossibilitiesfrontier. d.insidetheproductionpossibilitiesfrontier. 136.Ifaneconomyisproducingefficiently,then a.thereisnowaytoproducemoreofonegoodwithoutproducinglessofanothergood. b.itispossibletoproducemoreofbothgoodswithoutincreasingthequantitiesofinputsthatarebeingused. c.itispossibletoproducemoreofonegoodwithoutproducinglessofanothergood. d.itisnotpossibletoproducemoreofanygoodatanycost. 137.Aneconomy’sproductionoftwogoodsisefficientif a.allmembersofsocietyconsumeequalportionsofthegoods. b.thegoodsareproducedusingonlysomeofsociety’savailableresources. c.itisimpossibletoproducemoreofonegoodwithoutproducinglessoftheother. d.theopportunitycostofproducingmoreofonegoodiszero. 138.Whenaneconomyisoperatingatapointonitsproductionpossibilitiesfrontier,then a.consumersarecontentwiththemixofgoodsandservicesthatisbeingproduced. b.thereisnowaytoproducemoreofonegoodwithoutproducinglessoftheother. c.equalamountsofthetwogoodsarebeingproduced. d.Alloftheabovearecorrect. 139.Efficiencyisillustratedby a.boththeproductionpossibilitiesfrontierandthecircular-flowdiagram. b.neithertheproductionpossibilitiesfrontiernorthecircular-flowdiagram. c.theproductionpossibilitiesfrontieronly. d.thecircular-flowdiagramonly. 140.Supposeanationiscurrentlyproducingatapointinsideitsproductionpossibilitiesfrontier.Weknowthat a.thenationisproducingbeyonditscapacity,soinflationwilloccur. b.thenationisnotusingallavailableresourcesorisusinginferiortechnologyorboth. c.thenationisproducinganefficientcombinationofgoods. d.therewillbealargeopportunitycostifthenationtriestoincreaseproductionofanygood.