4/5 wallet and Merve's opportunity cost of one purse is 3/2 wallets. e. bett... A production possibilities frontier will shift outward if there is an improvement in technology. Suppose that genetic modification makes soybeans resistant to insects, allowing yields to increase. It has excess capacity in its assets in the amount of 22%. b. more of the other good be produced. Using the following table for a hypothetical economy plot your production possibilities data on a graph. b. the goods are produced using only some of society's available resources. An increase in transfer payments. If Arturo and Dina both spend all of their time producing tacos, then total production is: a. One mile of round-trip travel takes 12 min. 1 ton of beans for 1 ton of pork, b. Resources such as nonrenewable resources will decline, but labor remains fully employed, and technology is unchanged. With a straight line isoquant, there is a: a. What can you determine about the production of the two goods? If people who were laid off return back to work. Two nations have straight-line production possibility frontiers, but with different slopes. The reason that most PPFs are bowed outward (concave) rather than a straight line is that most resources used in production is what? Make sure that the graph includes all relevant numbers. True or False? She has 8 hours a day to produce toys. What would it mean if the PPF were bowed inward? a. When drawing a production possibilities frontier, which of the following is held constant? If the relative price of... What kind of choice does a PPF represent, and how does it illustrate a number of economic principles? B. moves the economy from a point on the PPF to a point inside the PPF. b. has eliminated scarcity. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource. Production possibility frontiers are thought to be concave from the origin (bowed out) because: A. of the different intensities with which commodities and services are used in producing capital, land, and labor. Refer to the diagram. In fact, it can produce all the following combinations of computers and books. It follows that country X is operating: a. beyond its production possibilities frontier (PPF) b. on its PPF c. inside (below) its PPF d. at a productive effi... Production is inefficient: a. A. In class, only two "realistic" examples are taught: constant opportunity cost and increasing opportunity cost. An increase in national saving and investment. 50 b. Batch size is 200 and the average n... Joan, who has been a university student for a year, has just started a new job. Which of the following description is correct? True or false: The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear. Draw a PPC graph of the US showing it is making electronics and wheat. They are only attainable today if we employ all unemployed or underemployed resources. Indicate whether the statement is true or false. What kinds of decisions would make it contract over time? Under variable proportions, the unit factor requirements are functions of the wage-rental ratio (\(w/r\)). a. True or false? What to produce, when to produce, and where to produce? B. decreased consumption in the future. (c) is more concave... What would result in a shift of the production possibility curve? According to the neoclassical growth model, a technological change [{Blank}] and a change in the capital stock [{Blank}]. Production of the two goods is subje... At full employment, a society produces A. somewhere within its production possibilities frontier (PPF). Suppose a round of put-put-golf costs $5, and a half-hour bicycle rental costs $3. Think of the production possibilities frontier (PPF) model. Understanding PPF with an example. A. Given the graph, select all the answers that are supported by the graph. Suppose that there are only two types of output in a country: nuclear missiles and consumer goods. A production possibility Frontier is a curve showing all maximum output possibilities for two goods. Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (i) study economics, (ii) watch two half-hour TV sitcoms, (iii) play pool, and (iv) jog around town. Would the production possibilities frontier for Parsimonious Country shift more or less than that for Party Country? What is the theoretical minimum number of stations? Then trade is opened up. True or false? True or False: 1. Why? What to produce, how to produce, and for whom to produce? If the production possibilities frontier is bowed outward, then what is true? b. the points at which the production-possibilities curve touches each axis. b. getting flatter. Trivia, Economics Quiz: Test On Microeconomics! If an economy produces its most wanted goods but uses outdated production methods, it is . The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. If the slope of the PPC is 2, the opportunity cost... Why does the production possibilities curve bowed-out in shape? How would they be described? The production possibilities frontier provides an illustration of the principle that: a. trade can make everyone better off. Explain or demonstrate why each nation can gain from trade. Create an account to browse all assets today, Production Possibility Frontier Questions and Answers, Biological and Biomedical b) increase in absenteeism. I capture scarcity, opportunity costs, trade-offs and the value of the skill sets of both individuals and firms. The setup and operation times for each machine are given in the table below. A production possibilities curve shows the various combinations of output: A production possibilities curve is drawn based on which of the following set of assumptions? Moving from Point A to B will lead to an increase in services (21-27). There are two goods, food and clot... a. Specialization and trade allow individuals to a. consume outside their own production possibilities frontier (PPF). True False. You are forced to make a decision on how to allocate the scarce reso… c. shifting inward. Points below a firm's total product curve are A. technologically efficient but not attainable. 400 tacos and 0 burritos, b. a) The frontier reflects constant costs of production. a. They are not attainable given our existing stock of resources and technology. Can we have decreasing opportunity cost in the production possibility frontier? a) High speed steel b) Aluminum oxide c) Titanium aluminum oxide d) Polycrystalline diamond... Will an increase in average length of annual vacations cause the national economy's PPF to shift inward or outward? The shift from __X__ to __Y__ only, c. Both the shift from __AB__ to __CD__ and the shif... A point inside the production possibilities curve is , while a point outside the curve is a) unattainable; attainable b) the maximum possible; below the maximum possible c) attainable; unattainab... Hosne's opportunity cost of one purse is a. Production Possibilities Frontier Questions Honors Economics Name:____ REFER TO THE ABOVE DIAGRAM WHEN ANSWERING THE FOLLOWING QUESTIONS. The economy is at a point below the production possibilities curve. When an economy produces a combination of goods that lies on the production possibilities frontier: A. resources are being used fully and efficiently. If the discovery of the remarkable health benefits of hot dogs were to change consumers preferences, it would A. expand the production possibilities fro... A point inside the production possibilities frontier is A. efficient, but not feasible. The question is broad, but I believe there is plenty of literature that defines this concept in similarly broad terms. a. If opportunity costs are constant, the production possibilities frontier is graphed as a _____. Give an example of a two-good economy where the production possibility set would be bowed inwards. How are consumption possibilities related to production possibilities in a closed economy? Suppose the production possibilities frontier (PPF) of a country is given by Q_B = (100 - 2Q_A^2)^{1/2}. We consider a typical exam type question for 1st year university economic students. b. the difference between microanalysis and macro analysis. The bowed shape of the production possibilities frontier can be explained by the fact that: a. all resources are scarce. c. points on the ppf. d. shifts downward. a. They imply that some resources, such as labor, are unemployed or underemployed. c. less of both goods. The fact that the slope of the production possibilities curve becomes steeper as you move down along the curve indicates what? Which country has an absolute advantage in the production of both goods? It is significant because it represents all possible output combinations the economy can choose from when it is operating at... A nation with fixed quantities of resources is able to produce any of the following combinations of bread and ovens: a. The following table illustrates the points a student can earn on examination in Economics and Biology if the student uses all available hours for study. When we say maximum production, I will give an example what I mean. A war would most likely: a. Maryam allocates her time between deciding websites and teaching web designing. Removing question excerpt is a premium feature. The slope of the production possibilities frontier represents the magnitude of this tradeoff. a. resources b. technology c. institutions d. price level. If a nation is producing at a point below its PPC, then: a) it is operating at less than maximum efficiency. The slope of this PPF is -2Q_A/Q_B. how does production possibilities curve illustrate how efficent an economy is? B. somewhere outside its PPF. C. a government mus... How would you illustrate the impact, of each of the following events, on a production possibilities curve, for factory goods and farm goods? b. aggregate demand curve; outward. An increase in the labor force will cause out an outwar... What will shift the production possibilities curve outward? Based on the table above, a production possibility frontier for Nepal can be plotted as below: Use the Nepal production table and production possibility frontier to answer the following questions. This quiz has around twelve questions of the same topic; choose the correct answer. Suppose you are studying a production possibilities frontier (PPF) that has a bowed-out shape relative to the origin. A. both c... What does a bowed-out production possibility frontier show? Which of the following causes the production possibilities curve to shift to the right? 3. D. economic recession. Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held as fixed? *a. Which one of the following is n o t a material commonly used to coat carbide cutting tool inserts? Which Harry Potter Hogwarts House Do You Belong To Quiz. Suppose that the United States and Cuba decide to open up trade. Always B. 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