AssignmentII

AssignmentII - ARE 201: Introduction to Agricultural &...

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Spring 2008 Assignment II (Chapter 3) 1) The figure above shows a nation's production possibilities frontier. In the figure, point A shows A) the minimum quantity of pizza that can be produced. B) an unattainable point. C) the maximum quantity of pizza that can be produced. D) an attainable point with unemployed resources. E) More information is needed to determine which of the above answers is correct. 2) The figure above shows a nation's production possibilities frontier. In the figure, point B shows A) an unattainable point. B) an attainable point. C) a point at which there are unemployed resources. D) a point with no trade off. E) a point with a free lunch. 3) Why is a production possibilities frontier bowed out? A) The bowed shape reflects increasing opportunity cost. B) The bowed shape reflects constant opportunity cost. C) The bowed shape reflects decreasing opportunity cost. D) The bowed shape indicates that opportunity cost at first decreases at a decreasing rate, and then begins to decrease at an increasing rate. E) The bowed shape indicates that opportunity cost at first increases at a decreasing rate, and then begins to increase at an increasing rate. 1
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4) If the production possibilities frontier between two goods were a straight line, then the opportunity cost of one good in terms of another would be A) increasing. B) decreasing. C) zero. D) constant. E) either constant, increasing, or decreasing but more information is needed to determine which. 5) The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and 4 million gallons of ice cream is A) unattainable. B) attainable and has full employment of all resources. C) unattainable because it has less than full employment of all resources. D) attainable and has less than full employment of all resources. E) More information is needed to determine if the point is attainable or not 6) The figure above shows the production possibilities frontier for a country. A combination of 2 million gallons of milk and 2 million gallons of ice cream is A) attainable and has full employment of resources. B) attainable and has less than full employment of resources. C) attainable but has more than full employment of resources. D) unattainable. E) More information is needed to determine if the point is attainable or not. 2
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7) The figure above shows the production possibilities frontier for a country. A combination of 3 million gallons of milk and 3 million gallons of ice cream is A) unattainable and has less than full employment of resources. B) attainable and has full employment of resources.
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This test prep was uploaded on 04/08/2008 for the course ARE 201 taught by Professor Eryuruk during the Spring '08 term at N.C. State.

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AssignmentII - ARE 201: Introduction to Agricultural &...

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