C l a g t at the r

two

Topic: Production Possibilities Frontier

Skill: Reputation

Production Possibilities and

Prospect Cost

4) The production opportunities frontier is definitely

A) upward sloping and reflects unlimited choices.

B) upward sloping and reflects tradeoffs in choices.

C) downward sloping and shows unlimited

choices.

D) downwards sloping and reflects tradeoffs in

choices.

Topic: Development Possibilities Frontier

Skill: Identification

1) The availability possibilities frontier

A) refers to the technology used in these kinds of goods as

computers and military plane.

B) once applied to U. S. technology but now makes reference

to Japan technology.

C) marks the boundary among attainable combinations of goods and services and unattainable combos.

D) is additionally called the provision curve.

Solution: D

Matter: Production Opportunities Frontier

Skill: Recognition

5) The production choices frontier

A) depicts the boundary among those mixtures of goods and services that can be produced and others that cannot given methods and the

current state of technology.

B) shows just how many services and goods are used by everyone in a nation. C) can be described as model that assumes you cannot find any scarcity and

no chance cost.

D) is a chart with price on the vertical axis and income for the horizontal axis.

Answer: C

Topic: Production Possibilities Frontier

Skill: Recognition*

2)

A)

B)

C)

D)

The availability possibilities frontier is the boundary between those combinations of products and services that

may be produced and the ones that can be consumed.

those solutions that are limited and those that

are unlimited.

those combinations of goods and services that

can be developed and those that cannot.

those wants which can be limited and people that are

endless.

Answer: A

Topic: Creation Possibilities Frontier

Skill: Conceptual

6) The availability possibilities frontier illustrates

A) all items that can be made by an economy

B) the combination of goods and services that can

always be produced effectively

C) all goods and services that are desired yet cannot

become produced due to scarce resources.

D) all possible development of capital goods

Solution: C

Theme: Production Choices Frontier

Skill: Conceptual

3)

A)

B)

C)

D)

THE FINANCIAL

PROBLEM

The availability possibilities frontier is the boundary between those combination of goods and services that can be developed and those that could be consumed.

consumed domestically and those that can be

used by foreigners.

produced and the ones that can not be produced.

used and those that cannot be made.

Answer: W

Answer: C

49

50

CHAPTER a couple of

Topic: Development Possibilities Frontier

Skill: Identification

Topic: Creation Possibilities Frontier

Skill: Synthetic

7) The availability possibilities frontier represents

A) the maximum quantity of methods available at

a time.

B) combinations of products and services that do certainly not

fully employ available solutions.

C) the maximum rate of growth of output possible

for an economic climate.

D) the maximum levels of production that can be

obtained.

11) Anne produces only corn and cloth. Choosing account of her personal preferences for corn and towel A) makes her development possibilities frontier

straighter.

B) makes her production possibilities frontier

steeper.

C) makes her creation possibilities frontier flatter.

D) does not impact her development possibilities frontier.

Answer: D

Topic: Development Possibilities Frontier

Skill: Conditional

8)

A)

B)

C)

D)

A production opportunities frontier does NOT

illustrate

the bounds on development imposed by simply our limited

resources and technology.

the exchange of one good or perhaps service another.

opportunity expense.

attainable and unattainable factors.

Answer: N

Topic: Development Possibilities Frontier

Skill: Conditional

9)

A)

B)

C)

D)

Any production level outside the development

possibilities frontier

is...

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Binalot Industry Analysis Article

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