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Unformatted text preview: itmuststopconsumingtheothergood entirely d. foraneconomytoproduceandconsumegoods,itmustsacrificeenvironmentalquality    17. Whichofthefollowingconceptscannotbeillustratedbytheproductionpossibilitiesfrontier? a. efficiency b. opportunitycost c. equality d. trade ­offs    18. Theopportunitycostofobtainingmoreofonegoodisshownontheproductionpossibilities frontierasthe a. amountoftheothergoodthatmustbegivenup. b. marketpriceoftheadditionalamountproduced. c. amountofresourcesthatmustbedevotedtoitsproduction. d. numberofdollarsthatmustbespenttoproduceit.    19. Thebowedshapeoftheproductionpossibilitiesfrontiercanbeexplainedbythefactthat a. allresourcesarescarce. b. economicgrowthisalwaysoccurring. c. theopportunitycostofonegoodintermsoftheotherdependsonhowmuchofeach goodtheeconomyisproducing. d. theonlywaytogetmoreofonegoodistogetlessoftheother.    20. Whenaproductionpossibilitiesfrontierisbowedoutward,theopportunitycostofproducingan additionalunitofagood a. increasesasmoreofthegoodisproduced. b. decreasesasmoreofthegoodisproduced. c. doesnotchangeasmoreofthegoodisproduced. d. mayincrease,decrease,ornotchangeasmoreofthegoodisproduced.    21. Ifaproductionpossibilitiesfrontierisbowedoutward,thentheopportunitycostofproducing moreofthefirstgoodishighestwhen a. theeconomyisproducingmuchofthefirstgoodandlittleofthesecondgood. b. theeconomyisproducingequalamountsofthefirstandsecondgoods. c. theeconomyisproducinglittleofthefirstgoodandmuchofthesecondgood. d. Noneoftheaboveiscorrectbecausetheopportunitycostofproducingmoreofthefirst goodisconstant.    21. Productionpossibilitiesfrontiersareusuallybowedoutward.Thisisbecause a. themoreresourcesasocietyusestoproduceonegood,thefewerresourcesithas availabletoproduceanothergood. b. itreflectsthefactthattheopportunitycostofproducingagooddecreasesasmoreand moreofthatgoodisproduced. c. oftheeffectsoftechnologicalchange. d. resourcesarespecialized;thatis,somearebetteratproducingparticulargoodsrather thanothergoods.    21. Economistsbelievethatproductionpossibilitiesfrontiers a. neverhaveabowedshape. b. rarelyhaveabowedshape. c. oftenhaveabowedshape. d. alwayshaveabowedshape.   Figure2 ­4    22. RefertoFigure2 ­4.Ifthiseconomydevotesallofitsresourcestotheproductionoftoothbrushes, thenitwillproduce a. 0toothbrushesand40toasters. b. 35toothbrushesand20toasters. c. 70toothbrushesand0toasters. d. 70toothbrushesand40toasters.    23. R...
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This note was uploaded on 01/27/2014 for the course ECON 1010 taught by Professor Jonathanpritchett during the Fall '12 term at Tulane.

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