Exam (elaborations)
Chapter 1 Economic Issues and Concepts
- Course
- Business Technology
- Institution
- Simon Fraser University (SFU )
Economic Issues and Concepts
[Show more]
Seller
Follow
Content preview
The diagram below shows two production possibilities boundaries for Country X.FIGURE 1-4
55) Refer to Figure 1-4. The production possibilities boundaries are drawn concave to the origin. What
does this shape of the PPB demonstrate?
A) the decreasing opportunity cost of producing more of either good
B) the scarcity of resources in the economy
C) the constant opportunity cost of producing more of either good
D) the unfair distribution of resources in the economy
E) the increasing opportunity cost of producing more of either good
Answer: E
Diff: 3
Topic: 1.1d. production possibilities boundary
Skill: Applied
Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the
production possibilities boundary.
User1: Graph
User2: Qualitative
, 56) Refer to Figure 1-4. If Country X, constrained by the production possibilities boundary PPB1, is
producing the combination of goods indicated at point F, it can produce more consumer goods by moving
to one of the points
A) A or E.
B) D or E.
C) A, B, or C.
D) A or B, but not C.
E) A, B, C, D, or E.
Answer: C
Diff: 3
Topic: 1.1d. production possibilities boundary
Skill: Applied
Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the
production possibilities boundary.
User1: Graph
User2: Qualitative
57) Refer to Figure 1-4. If Country X is currently producing at point A, it could move to point B if
A) the cost of producing capital goods were to increase.
B) some resources were switched from the capital goods industries to the consumer goods industries.
C) the cost of producing consumer goods were to increase.
D) some resources were switched from the consumer goods industries to the capital goods industries.
E) Country X is no longer able to produce the quantity of capital goods at point A.
Answer: B
Diff: 2
Topic: 1.1d. production possibilities boundary
Skill: Applied
Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the
production possibilities boundary.
User1: Graph
User2: Qualitative
58) Refer to Figure 1-4. If Country X were producing at point C,
A) the opportunity cost of moving to point B is to give up some consumption goods.
B) the opportunity cost of moving to point A is zero.
C) the opportunity cost of moving to point A is to give up some capital goods.
D) this is the maximum output possible from given resources.
E) it is not possible to move to any point on PPB1 or PPB2 without technological progress.
Answer: B
Diff: 3
Topic: 1.1d. production possibilities boundary
Skill: Applied
Learning Obj.: 1-1 Explain the importance of scarcity, choice, and opportunity cost, and how each is illustrated by the
production possibilities boundary.
User1: Graph
User2: Qualitative
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller medusain. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.82. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53340 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now