The concave shape of the production possibilities frontier reflects a the law

The concave shape of the production possibilities

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44.The concave shape of the production possibilities frontier reflects a.the law of comparative advantageb.the law of absolute advantagec.the law of increasing opportunity costd.the simplifying assumption of scarce resourcese.productive inefficiencyANS: CPTS:1DIF:2NAT:Financial theories, analysis, reporting, and marketsLOC:Scarcity, tradeoffs, and opportunity costTOP:Production Possibilities Frontiers 45.Assume that society is operating on its concave production possibilities fron-tier. As more and more units of the good on the horizontal axis are produced, Figure 2-10 46.Consider the production possibilities frontier for food and clothing in Figure 2-10. A movement from point J to point K could be caused by
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47.Movement from point K on the production possibilities curve for food and clothing in Figure 2-10, to point J inside the curve could be the result of 48.A country currently is using all its land to produce wheat and grapes. How-ever, the land most suited to growing grapes is being used to produce wheat, and the land most suited to growing wheat is being used to produce grapes. Which of the following statements is true? a.The country is operating outside of its production possibilities frontier.b.The country is operating along its pro-duction possibilities frontier.c.Wheat production must be sacrificed if the country increases grape produc-tion.d.Grape production must be sacrificed if the country increases wheat produc-tion.e.The country is operating inside its production possibilities frontier.ANS: EPTS:1DIF:2NAT:Financial theories, analysis, reporting, and marketsLOC:Scarcity, tradeoffs, and opportunity costTOP:Production Possibilities Frontiers
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  • Fall '15
  • Economics, Economics terminology, production possibilities frontiers

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