mac exam 1 questions with 100%
correct answers9
Frontier shows - ANSWERSthe limit you can go (on the line)
When an economy is on the frontier, this means: - ANSWERS
PPF - ANSWERSmarks the boundary between what an economy can produce and what it
cannot, given the current level of resources and state of technology.
Attainable - ANSWERSthe economy can do it.
Unattainable - ANSWERSthe economy cannot do it.
Inefficient - ANSWERSits attainable but its inefficient.
Production efficiency occurs - ANSWERSwhen an economy can produce more of one good only
by first reducing the production of some other goods.
When an economy is on the frontier, this means: - ANSWERSThere is no unemployment of
recourses
There is no underemployment of resources
Reallocating the resources you already have that is the PPF: shows what the economy can and
cannot do.
, When a PPF is a straight line - ANSWERSit illustrates the law of constant opportunity cost. This
means that the resources used to produce the two goods are equally suitable for each
Opportunity cost is different - ANSWERSwhen the PPF is not a straight line. Use graph not math
2500 planes 500 margin 200 change (shown on graph)
ALWAYS START FROM FIRST THEN SECOND THAN THIRD FOLLOW AFTER LAST NOT FROM
BEGINING.
When we have two COMPLETELY DIFFERENT GOODS, the PPF becomes bowed outward, and
illustrates - ANSWERSthe law of increasing opportunity costs. This means that the resources
used to produce each good are not equally suitable.
Economic growth - ANSWERSan expansion of production possibilities.
Primary factors that influence growth. - ANSWERSAn increase of resources
An increase in technology
PPF 0 - ANSWERS- original
PPF 1- - ANSWERSnewer updated attainable resources
contractionary monetary policy - ANSWERSwhen a PPF 1 is less than PPF 0. PPF 1 is shifting
inward.
The absolute advantage def - ANSWERSoccurs whenever an economic actor can produce more
of a good or service than any other actor.
correct answers9
Frontier shows - ANSWERSthe limit you can go (on the line)
When an economy is on the frontier, this means: - ANSWERS
PPF - ANSWERSmarks the boundary between what an economy can produce and what it
cannot, given the current level of resources and state of technology.
Attainable - ANSWERSthe economy can do it.
Unattainable - ANSWERSthe economy cannot do it.
Inefficient - ANSWERSits attainable but its inefficient.
Production efficiency occurs - ANSWERSwhen an economy can produce more of one good only
by first reducing the production of some other goods.
When an economy is on the frontier, this means: - ANSWERSThere is no unemployment of
recourses
There is no underemployment of resources
Reallocating the resources you already have that is the PPF: shows what the economy can and
cannot do.
, When a PPF is a straight line - ANSWERSit illustrates the law of constant opportunity cost. This
means that the resources used to produce the two goods are equally suitable for each
Opportunity cost is different - ANSWERSwhen the PPF is not a straight line. Use graph not math
2500 planes 500 margin 200 change (shown on graph)
ALWAYS START FROM FIRST THEN SECOND THAN THIRD FOLLOW AFTER LAST NOT FROM
BEGINING.
When we have two COMPLETELY DIFFERENT GOODS, the PPF becomes bowed outward, and
illustrates - ANSWERSthe law of increasing opportunity costs. This means that the resources
used to produce each good are not equally suitable.
Economic growth - ANSWERSan expansion of production possibilities.
Primary factors that influence growth. - ANSWERSAn increase of resources
An increase in technology
PPF 0 - ANSWERS- original
PPF 1- - ANSWERSnewer updated attainable resources
contractionary monetary policy - ANSWERSwhen a PPF 1 is less than PPF 0. PPF 1 is shifting
inward.
The absolute advantage def - ANSWERSoccurs whenever an economic actor can produce more
of a good or service than any other actor.
