56.Production possibilities curve analysis includes the idea of:a.opportunity cost.c.maximum production choices.b.scarcity.d.all of these.ANS:DPTS:1DIF:EasyNAT:BUSPROG: AnalyticTOP:The Production Possibilities CurveKEY:Bloom's: Knowledge57.An efficient economy:
58.A production possibility graph slopes down because of:59.The production possibility curve is bowed outward from the origin because of:60.The production possibilities curve demonstrates the basic economic principle that:a.market-based economies are more efficient.b.supply will determine demand in the economy.c.the production of more capital goods this year will causethe economy to produce less consumption goods next year.d.to produce more of any one thing, assuming full employment, the economy must produce less of something else.e.to produce more consumption goods this year requires the production of more capital goods this year.ANS:DPTS:1DIF:ModerateNAT:BUSPROG: AnalyticTOP:The Production Possibilities CurveKEY:Bloom's: Comprehension61.A production possibilities curve shows the various:
62.A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram,the opportunity cost of good X, in terms of good Y, is represented by the:
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- Spring '11
- Economics, production possibilities