Macroeconomics 16th Edition by Campbell R. McConnell Test bank

	A	B	C	D	E	F
Capital goods	5	4	3	2	1	0
Consumer goods	0	8	15	21	25	27

 Refer to the above tables. The opportunity cost of the fifth unit of capital goods:

      
       A) is higher in North Cantina than in South Cantina.
       B) is the same in North Cantina and South Cantina.
       C) is lower in North Cantina than in South Cantina.
       D) cannot be determined from the information provided.
      

 

122)

 Refer to the above diagram. Starting at point A, the opportunity cost of producing each successive unit of tractors is:

      
       A) a constant 2 units of bread.
       B) 2, 4, 6, and 8 units of bread.
       C) 8, 6, 4, and 2 units of bread.
       D) the reciprocal of the output of tractors.
      

 

123)

 Refer to the above diagram. Starting at point E, the production of successive units of bread will cost:

      
       A) a constant 8 units of tractors.    
       B) a constant 6 units of tractors.
       C) ¹/₈,¹/₆,¹/₄, and¹/₂units of tractors.
       D) ¹/₂,¹/₄,¹/₆, and¹/₈units of tractors.
      

 

124)       Refer to the diagram below. The concept of opportunity cost is best represented by the:

      
       A) shift of the production possibilities curve from PP₁to PP₂.
       B) move from B on PP₁to E on PP₂.
       C) move from B on PP₁to C on PP₁.
       D) move from D inside PP₁to B on PP₁.
      

 

125)       The fact that the slope of the production possibilities curve becomes steeper as we move down along the curve indicates that:

      
       A) the principle of increasing opportunity costs is relevant.
       B) society's resources are limited.