Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank

 


A. shows all levels of production that are consistent with a stable price level
 
B. indicates that any combination of products lying outside the curve is undesirable
 
C. shows how an economy actually employs its resources
 
D. shows all combinations of products that are most preferred by consumers
 
E. is a frontier between all combinations of products that can be produced and those combinations that cannot be produced
 
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #49
Topic: 01-08 The Production Possibilities Curve
Type: Definition
 
 
50.Any point inside the production possibilities curve indicates: 
 


A. that resources are imperfectly shiftable among alternative uses
 
B. the presence of inflationary pressures
 
C. that more output could be produced with available resources
 
D. that the economy is saving a part of its income
 
E. that some of an economy's potential output is not desired by consumers
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #50
Topic: 01-08 The Production Possibilities Curve
Type: Application
 
 
    
 
Lovewell - Chapter 01
 
 
51.At the end of World War II, Canada's economic adjustment from wartime to peacetime can best be described by the movement from: 
 


A. point a to point b
 
B. point a to point c
 
C. point b to point c
 
D. point b to point d
 
E. point c to point b
 
Difficulty: Hard
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #51
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
 
 
52.Consider the following two tables.

   

Suppose that North Cantina is producing 2 hamburgers and 17 hot dogs while South Cantina is producing 2 hamburgers and 21 hot dogs. We can conclude that: 
 


A. North Cantina is fully employing its resources but South Cantina is not
 
B. South Cantina is fully employing its resources but North Cantina is not
 
C. neither South Cantina nor North Cantina is fully employing its resources
 
D. both South Cantina and North Cantina are fully employing their resources
 
E. resources are perfectly shiftable between hotdogs and hamburgers
 
Difficulty: Hard
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #52
Topic: 01-08 The Production Possibilities Curve
Type: Numerical
 
 
    
 
Lovewell - Chapter 01
 
 
53.The shape of each production possibilities curve: 
 


A. indicates that resources shift perfectly from one use to another
 
B. indicates that resources are virtually unlimited
 
C. indicates that prices are constant
 
D. illustrates the law of increasing opportunity costs
 
E. shows that consumer wants are variable
 
Difficulty: Medium
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model
Lovewell - Chapter 01 #53
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
 
 
54.The concept of opportunity cost is best represented by the: 
 


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