Suppose an economy is faced with the production possibilities table shown in

Suppose an economy is faced with the production

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106.Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. If this economy chooses the combination of goods at point A,
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a.only capital goods are being produced.b.every resource in the economy is utilized in the production of capital goods.c.no capital goods are being used as factors of production.d.every resource in the economy is being used in the production of consumption goods.e.no consumption goods are being produced.ANS:DPTS:1DIF:ModerateNAT:BUSPROG: AnalyticSTA:DISC: Productivity and growthTOP:The Production Possibilities CurveKEY:Bloom's: Analysis107.Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.108.Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must____, because ____.109.Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The second unit of capital goods production will cost ____ units of consumption goods, and the third unit of capital goods production will cost ____ units of consumption goods.110.Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are produced, the opportunity cost in terms of sacrificed units of consumption goods ____ because of ____.a.decreases; greater efficiency in productionb.increases; decreasing opportunity costc.increases; the law of increasing costsd.increases; greater efficiency in production
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e.decreases; the law of increasing costsANS:CPTS:1DIF:ChallengingNAT:BUSPROG: AnalyticSTA:DISC: Productivity and growthTOP:The Production Possibilities CurveKEY:Bloom's: AnalysisExhibit 2-11 Production possibilities curves
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