Which of the following is true of the production possibilities curve? O It shows the minimum attainable output in a given period of time with a given amount of resources. O The quantity and quality of resources remain unchanged during a given period of time along the curve. O It shows that scarcity can be eliminated with full employment of resources. It slopes downward because of the decreasing opportunity cost of production.

Which of the following is true of the production possibilities curve? O It shows the minimum attainable output in a given period of time with a given amount of resources. O The quantity and quality of resources remain unchanged during a given period of time along the curve. O It shows that scarcity can be eliminated with full employment of resources. It slopes downward because of the decreasing opportunity cost of production.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 30
Which economic model reveals the variety of options for what to do with your scarce time? Supply curve Demand curve O Income distribution curve O Production possibilities curve
Suppose that you own a house. What is the opportunity cost of living in the house? O The opportunity cost is the cost of your monthly mortgage payment plus bills. O The opportunity cost is the rent you could have received from a tenant if you didn't live there. O There is no opportunity cost unless you could set up a business in the house. O There is no opportunity cost because you own the house.
QUESTION 4 Refer to the diagram. Other things equal, this economy will shift its production possibilities curve outward the most if: Capital Goods 0 a. o. Consumer Goods it chooses point B. O b. the ratio of capital to consumer goods is minimized. ✔C. chooses point A. d. it chooses point C.
Q9
The unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as O marginal effects. scarcity constraints. O opportunity costs. O secondary effects.
Can you help with e and f?
7. What is scarcity? In market economies, what determines the distribution of scarce goods and resources?
Which of the following is correct about the production possibilities curve? An economy can produce only on the production possibilities frontier line given its current available resources and technology. O An economy can produce at any point inside or outside the production possibilities frontier given its current available resources and technology. O An economy can produce at any point inside the production possibilities frontier, but not on the frontier without discovery of new resources or technology or real economic growth. O An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier without discovery of new resources or technology or real economic growth. O An economy can produce at any point on or inside the production possibilities frontier, but government price controls are needed for economy to produce beyond the frontier line.
What happens if a country produces a combination of goods that efficiently uses all of the resources available in the economy? 100- O A. The country has eliminated scarcity. O B. The country is maximizing its opportunity cost. A 80- c. The country is operating on its production possibilities frontier. B G O D. All of the above occur if a country uses all available resources. 60- Refer to the graph to the right. What is the opportunity cost of moving from point B to point C? 40- O A. 40 sedans 30 F **... O B. 40 SUVS D 20- O C. 20 sedans O D. 20 SUVS 10 50 E 20 40 60 80 100 Quantity of SUVS produced per day Quantity of sedans produced per day