Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank
E. move from point B to point C along PP1
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 #54
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
55.An improvement in technology could be expected to:
A. shift the production possibilities curve from PP1 to PP2
B. shift the production possibilities curve from PP2 to PP1
C. move the economy from point A to point C along PP1
D. move the economy from points A, B, or C on PP1 to point D inside PP1
E. move the economy from point C to point A along PP1
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 #55
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
56.Which one of the following would shift the production possibilities curve from PP1 to PP2?
A. the immigration of skilled workers into the economy
B. a worsening of diseases such as AIDS
C. an increase in consumer prices
D. a reduction in hourly wages
E. a change in consumer preferences
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 #56
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
Lovewell - Chapter 01
57.Points A, B, C, D, and E show:
A. that the opportunity cost of bicycles increases while that of computers is constant
B. combinations of bicycles and computers that a society can produce by fully employing its resources
C. that the opportunity cost of computers increases while that of bicycles is constant
D. that the demand for computers is greater than the demand for bicycles
E. that the opportunity cost of both bicycles and computers are constant
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 #57
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
58.If a society is currently producing 9 bicycles and 4 computers, the decision to increase computer output to 6 costs:
A. 4 bicycles
B. 2 bicycles
C. 5 bicycles
D. zero because unemployed resources are available
E. irrelevant because this decision is inconsistent with consumer preferences
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 #58
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
59.If a society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more bicycles:
A. cannot be realized because resources are fully employed
B. costs 1 computer
C. costs 2 computers
D. means that some resources are not fully employed
E. costs 6 computers
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 #59
Topic: 01-08 The Production Possibilities Curve
Type: Graphical
60.The law of increasing opportunity costs is reflected in a production possibilities curve that:
A. is an upward-sloping straight line
B. is a downward-sloping straight line
C. bows in to the left
D. is any shape
E. bows out to the right