Macroeconomics 16th Edition by Campbell R. McConnell Test bank

 

106)       A point inside the production possibilities curve is:

      
       A) attainable and the economy is efficient. 
       B) attainable, but the economy is inefficient.
       C) unattainable, but the economy is inefficient.
       D) unattainable and the economy is efficient.
      

 

107)      
 Refer to the above diagram. The combination of computers and bicycles shown by point G is:

      
       A) attainable, but too costly.  
       B) unattainable, given currently available resources and technology.
       C) attainable, but involves unemployment.
       D) irrelevant because it is inconsistent with consumer preferences.
      

 

108)      

 Refer to the above diagram. The combination of computers and bicycles shown by point F:

      
       A) is unattainable, given currently available resources and technology. 
       B) is attainable, but entails economic inefficiency.
       C) is irrelevant because it is inconsistent with consumer preferences.
       D) suggests that opportunity costs are constant.
      

 

109)      
 Refer to the above diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:

      
       A) cannot be realized because resources are fully employed.   
       B) will cost 1 unit of computers.
       C) will cost 2 units of computers.
       D) will cause some resources to become unemployed.
      

 

110)      
 Refer to the above diagram. The movement down the production possibilities curve from point A to point E suggests that the production of:

      
       A) computers, but not bicycles, are subject to increasing opportunity costs.     
       B) bicycles, but not computers, are subject to increasing opportunity costs.
       C) both bicycles and computers are subject to constant opportunity costs.
       D) both bicycles and computers are subject to increasing opportunity costs.
      

 

111)       The slope of the typical production possibilities curve:

      
       A) is positive.