MA Chapter 02.rtf - CHAPTER 2\u2014SCARCITY CHOICE AND ECONOMIC SYSTEMS MULTIPLE CHOICE 1 When opportunity costs rise as more of a good is consumed the

MA Chapter 02.rtf - CHAPTER 2—SCARCITY CHOICE AND...

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CHAPTER 2—SCARCITY, CHOICE, AND ECONOMIC SYS- TEMS MULTIPLE CHOICE 1. When opportunity costs rise as more of a good is consumed, the production possibilities frontier will be concave ( bowed out ) with respect to the origin. a. True b. False ANS: A PTS: 1 NAT: Financial theories, analysis, report- ing, and markets LOC: Scarcity, tradeoffs, and opportunity cost TOP: Production Possibilities Frontiers 2. By better utilizing existing resources, an economy can produce at a point out- side of its current production possibilities frontier. a. True b. False ANS: B PTS: 1 NAT: Financial theories, analysis, report- ing, and markets LOC: Scarcity, tradeoffs, and opportunity cost TOP: Production Possibilities Frontiers 3.The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency. a.Trueb.FalseANS:APTS:1NAT:Financial theories, analysis, report-ing, and marketsLOC:Scarcity, tradeoffs, and opportunity costTOP:Production Possibilities Frontiers 4.An economy's production possibilities frontier is fixed in the long run. 5.If capital is not being used efficiently, an economy cannot be operating at a point along its production possibilities frontier.
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6.Figure 2-1illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time. What is the opportunity cost for this person of moving from point a to point b? 7.Figure 2-1illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time. What is the opportunity cost for this person of moving from point b to point a? a.$5 of income per weekb.$10 of income per weekc.two hours of studying per weekd.$10 per hour of studying per weeke.$20 of income per weekANS: CPTS:1DIF:2NAT:Financial theories, analysis, reporting, and marketsLOC:Scarcity, tradeoffs, and opportunity costTOP:Production Possibilities Frontiers
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  • Fall '15
  • Economics, Economics terminology, production possibilities frontiers

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