Test Bank For Essential Foundations of Economics 6th Edition By Robin Bade Michael Parkin (All Chapters

TRDU
OWNLOAD THE Test Bank for Economics 13th Edition Arnold
E/FALSE l l l l l l l l




1 :lAldecreaselinlunemploymentlcauseslthelPPFltolshiftloutwardl(tolthelright).
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lB

2 :lThellawloflincreasinglopportunitylcostlresultslfromlthelvaryinglabilityloflresourcesltoladaptltolthelpro
ductionlofldifferentlgoodslandlitlhelpsltolexplainlwhylproductionlpossibilitieslcurveslareltypicallylbowe
dloutward.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

3 :lProductionlpossibilitieslfrontiersl(PPFs)lcanlshiftloutward,lbutltheyldolnotlshiftlinward.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lB

4 :lWithlrespectltolalPPFlforlgoodslXlandlY,lproductivelefficiencylimplieslthatlinlorderltolproduc
elmoreloflgoodlXltherelwilllbelalreductionlinlproductionloflgoodlY.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

5 :lIflthelPPFlforltwolgoodslislaldownward-
slopinglstraightlline,lthelresourceslusedltolproducelthoselgoodslarelequallylwell-
suitedltolthelproductionloflbothlgoods.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

6 :lInlalsituationlwhereltwolgoodslcanlbelproducedlbyltwoldifferentlpeople,litlislpossiblelforlonelpersonl
tolhavelalcomparativeladvantagelinlthelproductionloflbothlgoodslandlthelotherlpersonltolhavelthelcom
parativeladvantagelinlthelproductionloflneitherlgood.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lB

7 :lAldecreaselinlthelquantityloflresourceslavailablelcauseslalmovementlfromlonelpointlonlalgivenl
PPFltolanotherlpointlalonglthelsamelPPF.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lB

8 :lThellawloflincreasinglopportunitylcostlhelpsltolexplainlwhylPPFslareltypicallylbowed-
mynursytest.store 1l/l42

,o u t wDaOr dW.NLOAD lTHElTestlBanklforlEconomicsl13thlEditionlArnold
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

9 :lInlalPPFlgraphloflgoodslXlandlY,lpointslthatllielbeyondl(tolthelrightlof)lthelPPFlrepresentlcombina
tionslofltheltwolgoodslthatlarelcurrentlylunattainable.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

10 :lAlproductionlpossibilitieslfrontierlseparateslanlattainablelregionlfromlanlunattainablelregi
on.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

11 :lItlislpossiblelthroughltradelforlalcountryltolconsumelalcombinationloflgoodslthatllieslbeyon
dlitslproductionlpossibilitieslfrontier.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

12 :lWhenlanleconomylislnotlusinglallloflitslresources,litlislproducinglatlalpointlbelowlitslproduct
ionlpossibilitieslfrontier.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

13 :lIflalsocietyslunemploymentlratelriseslfroml5lpercentltol8lpercent,lthelresultlwilllbelalleftwar
dlshiftloflthelsocietyslPPF.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lB

14 :lWhenlopportunitylcostslarelconstant,lthelPPFlwilllbelalstraightlline.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA

15 :lOpportunitylcostlislillustratedlbylalmovementlfromlonelpointltolanotherlonlthelproductionlpossib
ilitieslfrontier.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lA
mynursytest.store 2l/l42

, DOWNLOAD THE Test Bank for Economics 13th Edition Arnold
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16 :lEconomiclgrowthlislillustratedlbylalshiftlinwardl(towardlthelorigin)loflthelPPF.
Al:ltrue
Bl:lfalse

CorrectlAnswerl:lB



MULTIPLE CHOICE l




17 :lPointslthatllieloutsidel(orlbeyond)lthelPPFlare
Al:lattainable.
Bl:lunattainable.
Cl:lefficient.
Dl:linefficient.

CorrectlAnswerl:lB

18 :lWhichloflthelfollowinglstatementslisltrue?
Al:lInlalworldloflefficientlylusedlscarcelresources,lmoreloflonelgoodlnecessarilylmeansllessloflsomeloth
erlgood.
Bl:lThellawloflincreasinglopportunitylcostslassumeslthatlalllpeoplelhavelthelsamelabilityltolproducelgoo
ds.
Cl:lEfficiencylimplieslthatlitlislimpossibleltolgetlmoreloflonelgoodlwithoutlgettingllessloflanother
.
Dl:lEvenliflalcountrylhaslunemployedlresources,litlcanlstilllbeloperatinglonlitslproductionlpossibilitieslfro
ntierl(PPF).
El:lalandlc

CorrectlAnswerl:lE

19 :lThroughlwar,lmanyloflthelfactorieslinlcountryl1lareldestroyedlandlmanyloflitslpeoplelarelkilled.l
Aslalresult,lthelcountrys
Al:lproductionlpossibilitieslfrontierl(PPF)lafterlthelwarlhaslprobablylshiftedltolthelrightlcompar
edltolitslPPFlpriorltolthelwar.
Bl:lPPFlafterlthelwarlhaslprobablylshiftedltolthelleftlcomparedltolitslPPFlpriorltolthelwar.
Cl:lPPFlafterlthelwarlislprobablylthelsamelPPFlaslbeforelthelwar.
Dl:labilityltolproducelgoodslandlserviceslhaslincreased.
El:lblandldl Correctl

Answerl:lB

20 :lTheleconomylmoveslfromlpointlA,lwherelitlproducesl100lunitsloflXlandl200lunitsloflY,ltolpointlB,l
wherelitlproducesl200lunitsloflXlandl150lunitsloflY.lItlfollowslthat
Al:lpointlAlislalproductivelinefficientlpoint.
Bl:lpointlAlmaylbelalproductivelinefficientlpoint.
Cl:lpointlAlmaylbelalproductivelefficientlpoint.
Dl:lpointlBlislalproductivelefficientlpoint.
El:lblandlc

CorrectlAnswerl:lE


mynursytest.store 3l/l42

, 21 :DBOoW
thNcLoOuA
ntD
ryl 1TH
anEdl cToeus
nttryl 2
Baarneklocfao
terdl oEncth
oenirormei
spcesctiv1e3ptrohduEcd
tiointpioosn
sibiA
litr
iensoldlfro
ntiersl(PPFs)lforlconsumerlgoodslandlcapitallgoods,lbutlcountryl1lproducesltwiceltheloutputloflbothlty
pesloflgoodslcomparedltolcountryl2.lItlfollowslthat
Al:lcountryl1slPPFllieslfurtherltolthelrightlthanlcountryl2slPPF.
Bl:lcountryl1lhaslalsmallerlpopulationlthanlcountryl2.
Cl:lcountryl1lhaslalbiggerlpopulationlthanlcountryl2.
Dl:lcountryl1lislefficientlandlcountryl2lislinefficient.
El:lnoneloflthelabovelCorrectl

Answerl:lA

22 :lIfltherelislalwayslalthree-for-
oneltradeofflbetweenlgoodslXlandlY,lthenlthelPPFlbetweenlXlandlYlis
Al:laldownward-slopinglcurvelthatlislbowedloutward.
Bl:laldownward-slopinglcurvelthatlislbowedlinward.
Cl:laldownward-slopinglstraightlline.
Dl:lanlupward-

slopinglstraightlline.lCorrectlAnswerl:lC

23 :lPointslthatllielinsidel(orlbelow)lthelPPFlare
Al:lunattainable.
Bl:lattainablelandlproductivelefficient.
Cl:lattainablelandlproductivelinefficient.
Dl:lattainablelandlneitherlproductivelefficientlnorlproductivelinefficient.lCor

rectlAnswerl:lC

24 :lIflincreasinglylmorelunitsloflgoodlYlmustlbelgivenluplasleachlsuccessivelunitloflgoodlXlislproduce
d,lthenlthelPPFlforltheseltwolgoodslis
Al:laldownward-slopinglstraightlline.
Bl:lcircular.
Cl:lanlupward-slopinglcurve.
Dl:laldownward-slopinglcurvelthatlislbowedloutward.
El:laldownward-

slopinglcurvelthatlislbowedlinward.lCorrectlAnswerl:lD

25 :lConsiderlthelfollowinglcombinationsloflgunslandlbutterlthatlcanlbelproduced:l0lguns,l20,000lu
nitsloflbutter;l5,000lguns,l15,000lunitsloflbutter;l10,000lguns,l10,000lunitsloflbutter;l15,000lguns,l5,
000lunitsloflbutter;l20,000lguns,l0lunitsloflbutter.lThelPPFlbetweenlgunslandlbutterlis
Al:laldownward-slopinglbowed-outlcurve.
Bl:laldownward-slopinglstraightlline.
Cl:lanlupward-slopinglstraightlline.
Dl:lItlislimpossibleltolanswerlthislquestionlwithoutlknowinglwhichlgoodlwouldlbelplottedlonlthelverticalla
xis.

CorrectlAnswerl:lB

26 :lWhichloflthelfollowinglstatementslisltrue?
Al:lThelconceptloflopportunitylcostslcannotlbelillustratedlwithinlalPPFlframework.
Bl:lIflscarcityldidlnotlexist,lneitherlwouldlalPPF.

mynursytest.store 4l/l42