Econ 1014 exam 2 fall 2011 yellow version - Manufactured Figure A Goods Agricultural Goods l Refer to Figure A If the figure above represents two

Econ 1014 exam 2 fall 2011 yellow version - Manufactured...

This preview shows page 1 - 3 out of 15 pages.

Figure A Manufactured Goods Agricultural Goods l. Refer to Figure A: If the figure above represents two possible Production Possibility Frontiers for a single economy, which of the following would provide a possible example of an economy experiencing a shift like that from PPFI to ppF2? f 1, The United States during the Great Depression as the unemployment rate roseto25%o. -(2) Japan after the recent earthquake and tsunami which killed ihoisands and left homes, businesses, farms and nuclear power plants destroyed. 3. The United States during the Second World War as the country increased production to meet the increased demand for goods and services that occurred because of the need to provide for the war effort. 4. All of the above 5. None of the above 2. Suppose a country decides to reduce the official retirement age to 60, legally requiring all individuals to stop working when they reach this new retirement age. How would tfrir U" likely to impact the country's economy? - 1. We would see the country's production possibilities frontier shift to the left. 2. We would see the country's consumption possibilities frontier shift to the left. 3. We would see the country's production and consumotion possibilities frontiers shift to the left. - 4. We would expect the country's production and consumption possibilities frontiers to shift to the left and the actual production and consumption levels to also fall. 5. We would expect the country's production and consumption possibilities frontiers to stay where they are but the actual production and consumption levels to fall. 3. For a country to produce outside of its current production possibilities frontier, it must: l. Make more effrcient use of its current resources. 2. Make more efficient use of its current technology. 3. Reduce its unemployment rate. 4. All of the above are ways to produce outside its current production possibilities frontier. - 5. None of the above. -+ I I -1
Image of page 1
4. If we assume that resources are identical in production, then: 1. The country will have rising opportunity cost as it tries to increase production of one good and decreases the production of the other good - 2- The production possibilities frontier will be a straight line. 3. The production possibilities frontier will be concaie or bowed out from the origin. 4- The production possibilities frontier will be greater than the consumption posibiliti"t frontier. 5. None of the above. 5. A country can increase its labor resource base and its production possibilities frontier by: l. Allowing more people to immigrate to the country. 2. Providing increased education and training for its population. 3. Offering subsidies to families that have more children. 4. All of the above 5. None of the above 6. Suppose the govemment decides to impose a binding price floor on the market for wheat with the intention of helping wheat producers.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 15 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes