PVL3702 Assignment 1 Semester 2 2024
, Consider a production possibility frontier for Iraq. If in 2014 Iraq's resources are not
being fully utilized, Iraq will be somewhere _____ its production possibility frontier.
a. near the top of
B. outside
C. inside
D. near the bottom of - CORRECT ANSWERS-C. inside
If farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes or no
cabbages and 100 pounds of potatoes and if he faces a linear production possibility
frontier, the opportunity cost of producing an additional pound of potatoes is _____
pound(s) of cabbage.
A. 200
B. 100
C. 0.5
D. 2 - CORRECT ANSWERS-D. 2
The economy with the lowest opportunity cost of producing a particular good is said to
have:
A. an increasing opportunity cost.
B. a comparative advantage.
C. a production possibility frontier.
D. a technological advantage. - CORRECT ANSWERS-B. a comparative advantage
The effect of a natural disaster can be shown by _____ the production possibility
frontier.
A. an inward shift of
B. an outward shift of
C. a movement from one point to another along
D. a point inside of - CORRECT ANSWERS-A. an inward shift of
The production possibility frontier illustrates that:
A. economic production possibilities have no limit.
B. an economy's productive capacity increases one-for-one with its population.
C. the economy will automatically end up at full employment.
D. if all resources of an economy are being used efficiently, more of one good can be
produced only if less of another good is produced. - CORRECT ANSWERS-D. if all
resources of an economy are being used efficiently, more of one good can be produced
only if less of another good is produced.
The production possibility frontier will shift outward because of:
, Consider a production possibility frontier for Iraq. If in 2014 Iraq's resources are not
being fully utilized, Iraq will be somewhere _____ its production possibility frontier.
a. near the top of
B. outside
C. inside
D. near the bottom of - CORRECT ANSWERS-C. inside
If farmer Sam MacDonald can produce 200 pounds of cabbages and no potatoes or no
cabbages and 100 pounds of potatoes and if he faces a linear production possibility
frontier, the opportunity cost of producing an additional pound of potatoes is _____
pound(s) of cabbage.
A. 200
B. 100
C. 0.5
D. 2 - CORRECT ANSWERS-D. 2
The economy with the lowest opportunity cost of producing a particular good is said to
have:
A. an increasing opportunity cost.
B. a comparative advantage.
C. a production possibility frontier.
D. a technological advantage. - CORRECT ANSWERS-B. a comparative advantage
The effect of a natural disaster can be shown by _____ the production possibility
frontier.
A. an inward shift of
B. an outward shift of
C. a movement from one point to another along
D. a point inside of - CORRECT ANSWERS-A. an inward shift of
The production possibility frontier illustrates that:
A. economic production possibilities have no limit.
B. an economy's productive capacity increases one-for-one with its population.
C. the economy will automatically end up at full employment.
D. if all resources of an economy are being used efficiently, more of one good can be
produced only if less of another good is produced. - CORRECT ANSWERS-D. if all
resources of an economy are being used efficiently, more of one good can be produced
only if less of another good is produced.
The production possibility frontier will shift outward because of:
