Macroeconomics 16th Edition by Campbell R. McConnell Test bank

 

184)       The future location of the economy's production possibilities curve will be affected by:

      
       A) the current division of domestic output between consumption and capital goods.    
       B) the rate of technological progress.
       C) the growth of the economy's supplies of resources.
       D) all of these are correct.
      

 

185)       Refer to the diagram below. Which of the following positions relative to PP₁would be the most likely to result in a future production possibilities curve of PP₃, rather than PP₂?

      
       A) A.    
       B) B.
       C) C.
       D) D.
      

 

186)       Through specialization and international trade a nation:

      
       A) can achieve some combination of goods lying outside its production possibilities curve.  
       B) can move from a high consumption-low investment to a high investment-low consumption point on its production possibilities curve.
       C) will achieve some combination of goods lying within its production possibilities curve.
       D) will cause its production possibilities curve to shift leftward.
      

 

187)       A country can achieve some combination of goods outside its production possibilities curve by:

      
       A) idling some of its resources.     
       B) specializing and engaging in international trade.
       C) buying the debt (bonds and stocks) of foreign nations.
       D) producing more consumption goods and fewer capital goods.
      

 

188)       International specialization and trade:

      
       A) allow a nation to get more of a desired good at less sacrifice of some other good. 
       B) can allow an economy to circumvent the output limits imposed by its domestic production possibilities curve.
       C) Has the same effect as having more and better resources.
       D) all of these are correct.
      

 

189)       Economists:

      
       A) always put the independent variable on the horizontal axis and the dependent variable on the vertical axis.
       B) always put the dependent variable on the horizontal axis and the independent variable on the vertical axis.
       C) are somewhat arbitrary in assigning independent and dependent variables to the horizontal and vertical axes.
       D) measure the slope of a line differently than do mathematicians.