136) The production possibilities curve below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy.
Production Alternatives | |||||
Products | A | B | C | D | E |
Capital goods | 0 | 1 | 2 | 3 | 4 |
Consumer goods | 22 | 18 | 13 | 7 | 0 |
Refer to the above table. What is the total opportunity cost of producing three units of capital goods?
A) 6 units of consumer goods
B) 7 units of consumer goods
C) 15 units of consumer goods
D) 22 units of consumer goods
137)
Refer to the above diagram. As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve:
Refer to the above diagram. As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve:
A) A.
B) B.
C) C.
D) D.
138)
Refer to the above diagram. Curve B is a:
Refer to the above diagram. Curve B is a:
A) production possibilities curve indicating constant opportunity costs.
B) production possibilities curve indicating increasing opportunity costs.
C) demand curve indicating that the quantity of consumer goods demanded increases as the price of capital falls.
D) technology frontier curve.
139) If the production possibilities curve is a straight line:
A) the two products will sell at the same market prices.
B) economic resources are perfectly shiftable between the production of the two products.
C) the two products are equally important to consumers.
D) equal quantities of the two products will be produced at each possible point on the curve.
140) A nation's production possibilities curve is "bowed out" from the origin because:
A) resources are not equally efficient in producing every good.
B) the originator of the idea drew it this way and modern economists follow this convention.