Econ Final Review with Key - Name Date Use the following to answer questions 1-4 Figure Consumer and Capital Goods 1(Figure Consumer and Capital Goods

Econ Final Review with Key - Name Date Use the following to...

This preview shows page 1 - 3 out of 27 pages.

Name: __________________________ Date: _____________Use the following to answer questions 1-4:Figure: Consumer and Capital Goods1.(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. If the economy is operating at point Yand its relevant production possibility frontier is curve 1, this means that:A)the economy is at full employment and is efficient.B)the economy is less than fully employed.C)the economy is not efficient.D)economic growth is not possible in the future.2.(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. The movement from curve 1 to curve 2 indicates:A)a growing ability of the economy to produce capital and consumer goods.B)going from unemployment to full employment.C)a decrease in the factors of production.D)a shift of the production possibility frontier toward producing fewer goods.3.(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. Technological improvements will likely:Page 1
Background image
4.(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. The economy is operating at point X.Suppose the economy decides to reduce its production of consumer goods and increase its production of capital goods while the supple of resources and technology stay the same, this is illustrated by the movement:5.If a production possibility frontier is a straight line, it tells us that the opportunity cost of producing one more unit of good X:Use the following to answer questions 6-8:6.(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. The opportunity cost in Mexico of producing 40 tractors is ________ (thousand) barrels of crude oil.A)30B)90C)120D)2707.(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. The opportunity cost in Mexico of producing 150 (thousand) barrels of crude oil is ________ tractors.Page 2
Background image
Image of page 3

You've reached the end of your free preview.

Want to read all 27 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture