Any point on a countrys production possibilities frontier represents a

Any point on a countrys production possibilities

This preview shows page 3 - 6 out of 26 pages.

15.Any point on a country's production possibilities frontier represents a combination of two goods that an economya. will never be able to produce.b. can produce using all available resources and technology.c. can produce using some portion, but not all, of its resources and technology.d. may be able to produce in the future with more resources and/or superior technology.Answer: B16.In the circular-flow diagram, in the markets forFigure 2-13ECON 104 INTRODUCTORY MACROECONOMIC ANALYSIS AND POLICY MIDTERM 1 REVIEW QUESTIONS_ANSWERS
17.Refer to Figure 2-1. Which arrow represents the flow of land, labor, and capital?18.Production possibilities frontiers are usually bowed outward. This is becauseTable 2-3Production Possibilities for FootvilleShoesSocks80006004004007002009000100019.Refer to Table 2-3. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600?a. 400 socksb. 300 socksc. 200 socksd. 100 socksAnswer: BFigure 2-54ECON 104 INTRODUCTORY MACROECONOMIC ANALYSIS AND POLICY MIDTERM 1 REVIEW QUESTIONS_ANSWERS
20.Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce21.Refer to Figure 2-5.Suppose this economy is producing at point D. Which of the following statements would best explain this situation?Figure 2-8

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture