9. Suppose that an economy is currently producing at a point inside its PPF. We know...
9. Suppose that an economy is currently producing at a point inside its PPF. We know that:
a. The economy is producing beyond its capacity, so inflation will occur
b. The economy is not using all of its available resources
c. The economy is producing an efficient combination of goods
d. There will be a large opportunity cost if the economy tries to increase production of any good
_____ 10. Production possibility frontiers are usually shown as bowed outward. This is because:
a. The more resources a society uses to produce one good, the fewer resources it has
available to produce another good
b. The opportunity cost of producing a good decreases as more and more of that good is produced
c. Of the effects of technological change
d. Many resources in a society are better at producing one good than another
_____ 11. A production possibilities frontier can shift outward if:
a. The government increases the amount of money in the economy
b. There is technological improvement
c. Resources are shifted from production of one good to the production of the other
d. The economy abandons inefficient production methods in favor of efficient ones
_____ 12. Which of the following statements is correct?
a. Buyers determine supply and sellers determine demand
b. Buyers determine demand and sellers determine supply
c. Buyers determine both demand and supply
d. Sellers determine both demand and supply
Homework Answers
Q 9 - correct option= (b)
Any point inside the PPF signifies that there is an under-utilization of resources. As here the economy is producing at a point situated inside the PPF, this means that there are resources available to produce goods, but they are not fully utilized, that is the amount of production that should take place is not taking place in this economy.
Q 10.- correct option = (a)
This derives from the famous' guns and butter' problem. As the resources in a society is fixed, to produce more of butter, which is a civilian good, the production of the other good, gun, which is a non-civilian good has to be reduced.
Q 11- correct option= (b)
Technological improvement causes an increase in the production of both of the goods on the PPF. A greater number of both of the goods can be produced at the same fixed resource base using the advanced technology.
Q 12- correct option= (b)
Demand for goods is created by buyers and corresponding to that the sellers create a supply of the goods.
Add Answer to:
9. Suppose that an economy is currently producing at a point
inside its PPF. We know...
Juwe OP answers the question 1. Macroeconomists study a. the decisions of individual households and firms....
Juwe OP answers the question 1. Macroeconomists study a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions. 2. Production possibilities frontiers are usually bowed outward. This is because a. the more resources a society uses to produce one good, the fewer resources it has available to produce another good. b. the opportunity cost of producing a good decreases as more and more of that...
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The...
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The economy cannot produce more of one good without simultaneously reducing the output of another good. B) is producing inefficiently. If production was arranged more efficiently the economy can produce more on one good without sacrificing any production of another good. C) it is producing at an unattainable point. You cannot be inside the Production Possibilities Frontier. D) then opportunity cost approaches infinity. No economy...
I. Multiple Choice: Choose the alternative that best completes the statement or answers the question. 1....
I. Multiple Choice: Choose the alternative that best completes the statement or answers the question. 1. Production possibilities frontiers are typically concave (bowed out) from the origin because of the law of supply b. a. there is usually a one-for-one trade-off in resources used in production economies of scale enable firms to reduce the average costs of production as output rises d. c. the opportunity cost of a good rises as the quantity of the good produced increases e. resources...
Per class discussion, if injections exceed leakages; GDP becomes zero. GDP decreases. GDP increases. GDP remains...
Per class discussion, if injections exceed leakages; GDP becomes zero. GDP decreases. GDP increases. GDP remains unchanged. The double-coincidence of wants is a problem with: the financial markets. Christmas. barter. money exchanges. Marginal cost is the opportunity cost of a good or service that exceeds its benefit. that arises from producing one more unit of a good or service. that your activity imposes on someone else. of a good or service divided by the number of units produced. The production...
Per class discussion, if injections exceed leakages; GDP becomes zero. GDP decreases. GDP increases. GDP remains...
Per class discussion, if injections exceed leakages; GDP becomes zero. GDP decreases. GDP increases. GDP remains unchanged. The double-coincidence of wants is a problem with: the financial markets. Christmas. barter. money exchanges. Marginal cost is the opportunity cost of a good or service that exceeds its benefit. that arises from producing one more unit of a good or service. that your activity imposes on someone else. of a good or service divided by the number of units produced. The production...
11. Working with Numbers and Graphs Q11 Suppose that an economy, producing at point A on...
11. Working with Numbers and Graphs Q11 Suppose that an economy, producing at point A on a production possibilities frontier, produces 450 units of good X and 400 units of good Y. Also suppose that, with the same resources and technology, the economy could produce at point B, which represents 600 units of good X and 550 units of good Y. True or False: It follows that when the economy is producing at point A, it is productive inefficient. True...
11. Working with Numbers and Graphs Q11 Suppose that an economy, producing at point A on...
11. Working with Numbers and Graphs Q11 Suppose that an economy, producing at point A on a production possibilities frontier, produces 200 units of good X and 500 units of good Y. Also suppose that, with the same resources and technology, the economy could produce at point B, which represents 350 units of good X and 750 units of good Y. True or False: It follows that when the economy is producing at point A, it is productive inefficient. True...
If the economy is currently producing at a point inside its Production Possibilities Frontier O alternate...
If the economy is currently producing at a point inside its Production Possibilities Frontier O alternate products must be sacrificed in order for production to increase. O technology must improve in order for production to increase. O human capital must improve in order to production to increase. O more resources must be discovered in order for production to increase. O production can increase if resources are used more efficiently.
Figure 2-1 4) Refer to Figure 2-1. Point A is A) technically efficient. B) unattainable with...
Figure 2-1 4) Refer to Figure 2-1. Point A is A) technically efficient. B) unattainable with current resources. C) inefficient in that not all resources are being used. D) the equilibrium output combination. 5) Refer to Figure 2-1. Point B is A) technically efficient. B) unattainable with current resources. C) inefficient in that not all resources are being used. D) the equilibrium output combination. 6) Refer to Figure 2-1. Point C is A) technically efficient. B) unattainable with current resources....
41. A maximized social surplus in an economy means that ________. a. the sum of consumer...
41. A maximized social surplus in an economy means that ________. a. the sum of consumer and producer surpluses have the largest possible value b. there is an even distribution of income among the people in that economy c. each of the consumer surplus, and the producer surplus have their largest possible values d. it is possible to make some people better off without making any other person worse off 42. The following figure depicts a nonlinear production possibilities curve....
Juwe OP answers the question 1. Macroeconomists study a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions. 2. Production possibilities frontiers are usually bowed outward. This is because a. the more resources a society uses to produce one good, the fewer resources it has available to produce another good. b. the opportunity cost of producing a good decreases as more and more of that...
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The economy cannot produce more of one good without simultaneously reducing the output of another good. B) is producing inefficiently. If production was arranged more efficiently the economy can produce more on one good without sacrificing any production of another good. C) it is producing at an unattainable point. You cannot be inside the Production Possibilities Frontier. D) then opportunity cost approaches infinity. No economy...
I. Multiple Choice: Choose the alternative that best completes the statement or answers the question. 1. Production possibilities frontiers are typically concave (bowed out) from the origin because of the law of supply b. a. there is usually a one-for-one trade-off in resources used in production economies of scale enable firms to reduce the average costs of production as output rises d. c. the opportunity cost of a good rises as the quantity of the good produced increases e. resources...
If the economy is currently producing at a point inside its Production Possibilities Frontier O alternate products must be sacrificed in order for production to increase. O technology must improve in order for production to increase. O human capital must improve in order to production to increase. O more resources must be discovered in order for production to increase. O production can increase if resources are used more efficiently.
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