Macroeconomics 16th Edition by Campbell R. McConnell Test bank

      
       A) is Q₁.      
       B) is Q₂.
       C) is Q₃.
       D) is greater than Q₃.
      

 

148)

 Refer to the above diagram for athletic shoes. If the current output of shoes is Q₁, then:

      
       A) society would consider additional units of shoes to be more valuable than alternative products.     
       B) society would consider additional units of shoes to be less valuable than alternative products.
       C) society would experience a net loss by producing more shoes.
       D) resources are being allocated efficiently to the production of shoes.
      

 

149)

 Refer to the above diagram for athletic shoes. If the current output of shoes is Q₃, then:

      
       A) resources are being allocated efficiently to the production of shoes. 
       B) society would consider additional units of shoes to be more valuable than alternative products.
       C) society would consider additional units of shoes to be less valuable than alternative products.
       D) society would experience a net gain by producing more shoes.
      

 

150)       Recessions are typically characterised by points:

      
       A) inside the production possibilities curve.      
       B) outside the production possibilities curve.
       C) on the production possibilities curve.
       D) that are not attainable on the production possibilities curve.
      

 

151)       Production possibilities (alternatives)

 

	A	B	C	D	E	F
Capital goods	5	4	3	2	1	0
Consumer goods	0	5	9	12	14	15

 Refer to the above table. As compared to production alternative D, the choice of alternative C would:

      
       A) tend to generate a more rapid growth rate.    
       B) be unattainable.
       C) entail unemployment.