e \ufb03 cient unattainable Correct Correct attainable 125 125 pts Question 20 The

E ffi cient unattainable correct correct attainable

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ecient. unattainable. Correct!Correct!attainable. 1.25 / 1.25 ptsQuestion 20The law of increasing costs holds that the opportunity cost:of a good decreases as the quantity of the good produced increases. of a good is proportional to the resources used in its production. of a good increases as more of the good is produced. Correct!Correct!of a good does not change with the resources used its production. changes as more of the good is produced.
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1.25 / 1.25 ptsQuestion 21Adding more resources causes:downward movement along a production possibilities curve. the production possibilities curve to shift in. upward movement along a production possibilities curve. the production possibilities curve to shift out. Correct!Correct!the production possibilities curve to become positively sloped. 1.25 / 1.25 ptsQuestion 22The law of increasing costs indicates that the opportunity cost of producing a good:is proportional to the production of the good. is constant to the production of the good. increases as more of the good is produced. Correct!Correct!decreases as more of the good is produced. increases as less of the good is produced. 1.25 / 1.25 ptsQuestion 23The process through which an economy's production possibilities curve shifts outward is:full-employment management. investment. Correct!Correct!
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resource renewal. out-resourcing. 1.25 / 1.25 ptsQuestion 24In economics, investment refers to the process of accumulating:capital goods. Correct!Correct!consumer goods. money. stocks and bonds. 1.25 / 1.25 ptsQuestion 25Exhibit 2-16 Production possibilities curveIn Exhibit 2-16, to move from U to B, the opportunity cost:would be 4 units of consumption goods.
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would be 2 units of capital goods. would be zero. Correct!Correct!would be 5 units of capital goods. cannot be estimated. 0 / 1.25 ptsQuestion 26Which would be least likelyto cause the production possibilities curve to shift to the right?An increase in the labor force. You AnsweredYou AnsweredImproved methods of production. An increase in the education and training of the labor force. A decrease in unemployment. Correct AnswerCorrect Answer1.25 / 1.25 ptsQuestion 27Production possibilities curve analysis includes the idea of:opportunity cost. scarcity. maximum production choices. all of these. Correct!Correct!1.25 / 1.25 ptsQuestion 28
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People in poor countries may have difficulties achieving economic growth because:their production possibilities curves slope upward instead of downward. they must cut back on current consumption to increase capital goods. Correct!Correct!they have a solid consumption base already in place. their resource bases are fully developed. the law of increasing costs makes it hard to produce more goods. 1.25 / 1.25 ptsQuestion 29When deciding whether to buy a second car, marginal analysis indicates that the purchaser shouldcompare the:benefits expected from two cars with the cost of both.
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