all quizes - 1. The production possibilities curve shows:...

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Unformatted text preview: 1. The production possibilities curve shows: A. the amount of waste which results from the inefficient use of society's resources. B. the result of using competitive markets to allocate society's scarce resources. C. the optimal output mix for society. D. for a given output of one good, the maximum amount of another that can be produced. E. the results of consumers incomes going up. Points Earned: 1/1 Correct Answer: D Your Response: D 2. The diagram above shows a production possibilities curve for spam and eggs. Point A is: A. attainable and efficient. B. attainable, but not efficient. C. unattainable. D. the result of not having enough resources in the society. E. uncertain, as to attainability or efficiency. Points Earned: 1/1 Correct Answer: B Your Response: B 3. The diagram above shows two production possibilities curves for spam and eggs, XY and X'Y'. The difference between them is due to differences in: A. the welfare of consumers in the economy. B. the amounts of inputs available. C. the efficiency with which eggs are produced. D. the efficiency with which spam is produced. E. none of the above. Points Earned: 1/1 Correct Answer: B Your Response: B 4. The diagram above shows the production possibilities frontier for producing computers and cars. For production of cars in the range of 500 to 600, the opportunity cost of one more car is: A. about 10 computers. B. about 100 computers. C. about 1000 computers. D. about 18 (=9000/500) computers. E. about 8500 computers. Points Earned: 1/1 Correct Answer: A Your Response: A 5. For the production possibilities curve in the last question, we know that the opportunity cost of another car: A. is constant as more cars are produced. B. decreases as more cars are produced. C. increases as more cars are produced. D. cannot be determined without more information. Points Earned: 1/1 Correct Answer: C Your Response: C 6. When a production possibilities curve has its usual shape (bowing out), what can we say? A. It is possible to produce more of one good, and give up none of the other good, while moving along the curve. B. All individuals in the society produce both goods equally well. C. The opportunity cost of producing more of one product will change as we move along the production possibilities curve. D. Some resources are unemployed. E. None of the above is true. Points Earned: 1/1 Correct Answer: C Your Response: C 7....
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This note was uploaded on 03/19/2008 for the course ECON 201 taught by Professor C.liedholm during the Summer '07 term at Michigan State University.

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all quizes - 1. The production possibilities curve shows:...

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