ch2 the economic problem testbank

ch2 the economic problem testbank - Chapter 2 THE ECONOMIC...

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49 2 THE ECONOMIC PROBLEM ± Production Possibilities and Opportunity Cost Topic: Production Possibilities Frontier Skill: Recognition 1) The production possibilities frontier A) refers to the technology used in such goods as computers and military aircraft. B) once applied to U.S. technology but now refers to Japanese technology. C) marks the boundary between attainable combi- nations of goods and services and unattainable combinations. D) is also called the supply curve. Answer: C Topic: Production Possibilities Frontier Skill: Recognition* 2) The production possibilities frontier is the bound- ary between A) those combinations of goods and services that can be produced and those that can be con- sumed. B) those resources that are limited and those that are unlimited. C) those combinations of goods and services that can be produced and those that cannot. D) those wants that are limited and those that are unlimited. Answer: C Topic: Production Possibilities Frontier Skill: Conceptual 3) The production possibilities frontier is the bound- ary between those combination of goods and ser- vices that can be A) produced and those that can be consumed. B) consumed domestically and those that can be consumed by foreigners. C) produced and those that cannot be produced. D) consumed and those that cannot be produced. Answer: C Topic: Production Possibilities Frontier Skill: Recognition 4) The production possibilities frontier is A) upward sloping and reflects unlimited choices. B) upward sloping and reflects tradeoffs in choices. C) downward sloping and reflects unlimited choices. D) downward sloping and reflects tradeoffs in choices. Answer: D Topic: Production Possibilities Frontier Skill: Recognition 5) The production possibilities frontier A) depicts the boundary between those combina- tions of goods and services that can be produced and those that cannot given resources and the current state of technology. B) shows how many goods and services are con- sumed by each person in a country. C) is a model that assumes there is no scarcity and no opportunity cost. D) is a graph with price on the vertical axis and in- come on the horizontal axis. Answer: A Topic: Production Possibilities Frontier Skill: Conceptual 6) The production possibilities frontier illustrates A) all goods that can be produced by an economy B) the combination of goods and services that can be produced efficiently C) all goods and services that are desired but cannot be produced due to scarce resources. D) all possible production of capital goods Answer: B Chapter
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50 CHAPTER 2 Topic: Production Possibilities Frontier Skill: Recognition 7) The production possibilities frontier represents A) the maximum amount of resources available at any given time. B)
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This note was uploaded on 03/11/2012 for the course ECON 104 taught by Professor Ismailov during the Spring '11 term at London College of Accountancy.

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ch2 the economic problem testbank - Chapter 2 THE ECONOMIC...

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