A) the economy is using its resources inefficiently.
B) resources are perfectly shiftable among alternative uses.
C) production technology is fixed.
D) the economy is engaging in international trade.
100) Which of the following is not correct? A typical production possibilities curve:
A) indicates how much of two products a society can produce.
B) reveals how much each additional unit of one product will cost in terms of the other product.
C) specifies how much of each product society should produce.
D) indicates that to produce more of one product society must give up larger and larger amounts of the other product.
101) Which one of the following statements is correct?
A) Relative scarcity is no longer a central notion in economics because we are in an age of abundance.
B) Most production possibilities curves are convex as viewed from the origin.
C) The production possibilities curve shows society's preferences for consumer goods relative to capital goods.
D) The central concept underlying the production possibilities curve is that of limited resources.
102) The typical production possibilities curve is:
A) an upward sloping line which is concave to the origin.
B) a downward sloping line which is convex to the origin.
C) a downward sloping line which is concave to the origin.
D) a straight upward sloping line.
103) Refer to the diagram below. Points A, B, C, D, and E show:
A) that the opportunity cost of bicycles increases, while that of computers is constant.
B) combinations of bicycles and computers which society can produce by using its resources efficiently.
C) that the opportunity cost of computers increases, while that of bicycles is constant.
D) that society's demand for computers is greater than its demand for bicycles.
104) Refer to the following production possibilities curves. Curve (a) is the current curve for the economy. Given production possibilities curve (a), the combination of capital and consumer goods indicated by point L:
A) would entail substantial unemployment.
B) would entail an inefficient use of society's resources.
C) is beyond the productive capacity of this society.
D) suggests the productive capacity of the system is declining.
105) A point on the frontier of the production possibilities curve is: