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Unformatted text preview: 1 Purposeful behaviour suggests that: C. individuals will make different choices because their information and constraints differ. 2 The slope of the typical production possibilities curve: B. increases as one moves southeast along the curve. 3 Which situation would most likely shift the production possibilities curve for a nation in an outward direction? B. an increase in the supply of resources 4 Through specialization and international trade a nation: A. can achieve some combination of goods lying outside its production possibilities curve. 5 The slope of a line parallel to the horizontal axis is: A. zero. 6 (The following economy produces two products.) Production Possibilities Table Refer to the above table. In moving from possibility C to D, the cost of a unit of steel in terms of a unit of wheat is: B. 20. 7 Refer to the above table. As compared to production alternative D, the choice of alternative C would: A. tend to generate a more rapid growth rate. 8 Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning? C. the post hoc fallacy 9 The production possibilities curve illustrates the basic principle that: C. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. 10 Certain inherently desirable products such as education and health care should be produced so...
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- Spring '08