巴德宏觀經(jīng)濟(jì)學(xué)原理（英文版第8版）題庫(kù)

FoundationsofMacroeconomicsf8e(Bade)

Chapter3TheEconomicProblem

3.1ProductionPossibilities

1)TheUnitedStatesproducedapproximatelyworthofgoodsandservicesin2011.

A)$15trillion

B)$15billion

C)$150trillion

D)$150billion

E)$1,500trillion

Answer:A

Topic:Productionpossibilities

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

2)Whichofthefollowingisanassumptionusedwhendrawingaproductionpossibilities

frontier?

i.Humanwantsanddesiresarelimitedtowhatisavailable.

ii.Onlytwogoodsareconsidered.

iii.Theleveloftechnologyisfixedandunchanging.

A)ionly

B)iionly

C)iandiii

D)iiandiii

E)i,ii,andin

Answer:D

Topic:Productionpossibilitiesfrontier

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

3)Intheproductionpossibilitiesmodel,theverticalaxismeasuresandthehorizontal

axismeasures.

A)thequantityofagoodorservice;thequantityofanothergoodorservice

B)thepriceofagoodorservice;thequantityofthegoodorservice

C)thepriceofagoodorservice;thepriceofanothergoodorservice

D)thequantityofagoodorservice;time

E)people'swants;thequantityofagoodorservice

Answer:A

Topic:Productionpossibilitiesfrontier

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

4)Theproductionpossibilitiesfrontierillustratesthe

A)maximumcombinationsofgoodsandservicesthatcanbeproduced.

B)resourcestheeconomypossess,butnotitsleveloftechnology.

C)goodsandservicesthatpeoplewant.

D)limitstopeople'swants.

E)amountofeachgoodthatpeoplewanttobuy.

Answer:A

Topic:Productionpossibilitiesfrontier

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

5)Whendrawingaproductionpossibilitiesfrontier,whichofthefollowingisheldconstant?

A)theamountofmoneyintheeconomy

B)theavailablefactorsofproductionandthestateoftechnology

C)thepricesofgoodsandservices

D)thequantityofthegoodsandservicesthatareproduced

E)Noneoftheabovebecausenothingisheldconstantwhendrawingtheproductionpossibilities

frontier.

Answer:B

Topic:Productionpossibilitiesfrontier

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

6)Aproductionpossibilitiesfrontiershows

A)thevariouscombinationsofoutputanationcanproduceacertaintime,givenitsavailable

resourcesandtechnology.

B)thelimitstofuturegrowthofanation.

C)howmoneycanbeallocatedamongtwokindsofgoods.

D)thatifpriceofonegooddecreases,thepriceoftheotherhastoincrease.

E)thatitisimpossibletoproduceinefficiently.

Answer:A

Topic:Productionpossibilitiesfrontier

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

7)Theproductionpossibilitiesfrontieristhe

A)maximumoutputthatcanbeproducedatanopportunitycostofzero.

B)minimumoutputthatcanbeproducedwhenresourcesareusedinefficiently.

C)boundarybetweenthecombinationsofgoodsandservicesthatcanbeproducedandthe

combinationsthatcannotbeproduced,giventheavailablefactorsofproductionandthestateof

technology.

D)boundarybetweenthecombinationsofgoodsandservicesthatcanbeproducedandthe

combinationsthatcannotbeproducedwhentechnologyischanging.

E)maximumopportunitycostcombinationsofgoodsandservices.

Answer:C

Topic:Productionpossibilitiesfrontier

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

8)Theproductionpossibilitiesfrontieristheboundarybetweenthe

A)goodsandservicesthattheeconomycanproduce.

B)attainableandunattainablecombinationsofgoodsandservices.

C)wantedandunwantedcombinationsofgoodsandservices.

D)rationalandirrationalchoicesfacingasociety.

E)affordableandunaffordablecombinationsofproduction.

Answer:B

Topic:Productionpossibilitiesfrontier

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

9)Consideraproductionpossibilityfrontierwithjeansontheverticalaxisandshoesonthe

horizontalaxis.Asthecountrymovesalongthefrontierclosertothehorizontalaxis,

A)morejeansareproduced.

B)thecountryeventuallychoosesanunattainablepoint.

C)freelunchesoccur.

D)moretradeoffsoccur.

E)moreshoesareproduced.

Answer:E

Topic:Productionpossibilitiesfrontier

Skill:Level4:Applyingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

10)Whilemovingalongaproductionpossibilitiesfrontier,theamountoflabor,the

amountofcapital,andtheleveloftechnology.

A)isfixed;isfixed;varies

B)varies;isfixed;varies

C)varies;isfixed;isfixed

D)isfixed;isfixed;isfixed

E)varies;varies;varies

Answer:D

Topic:Productionpossibilitiesfrontier

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

AirplanesCruiseships

Possibility(number)(number)

A1(X)0

B8020

C5040

D060

11)Thetableabovegivesfourproductionpossibilitiesforairplanesandcruiseships.In

possibilityA,howmanyresourcesaredevotedtotheproductionofairplanes?

A)0

B)few

C)most

D)all

E)Itisimpossibletotellwithoutmoreinformationaboutthepricesofairplanesandcruiseships.

Answer:D

Topic:Productionpossibilitiesfrontier

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

12)Thetableabovegivesfourproductionpossibilitiesforairplanesandcruiseships.In

possibilityA,howmanyresourcesaredevotedtotheproductionofcruiseships?

A)0

B)few

C)most

D)all

E)Itisimpossibletotellwithoutmoreinformationaboutthepricesofairplanesandcruiseships.

Answer:A

Topic:Productionpossibilitiesfrontier

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

13)Movingfromonepointtoanotheronaproductionpossibilitiesfrontierimplies

A)increasingtheproductionofbothgoods.

B)decreasingtheproductionofbothgoods.

C)increasingtheproductionofonegoodanddecreasingtheproductionofanother.

D)holdingtheproductionlevelsofbothgoodsconstant.

E)changingtheamountoffactorsofproductionthatareemployed.

Answer:C

Topic:Productionpossibilitiesfrontier

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

14)AssumethatanassociationofyoungworkershaslobbiedCongresstorequirethatall

workersretireoncetheyreachtheageoffifty.Whatimpactwouldthislawhaveonthenation's

productionpossibilitiesfrontier?

A)noimpactatall

B)Thelevelofunemploymentwoulddecreasesotheproductionpossibilitiesfrontierwould

shiftoutward.

C)Thenationwouldmovetoanewpositiononitsproductionpossibilitiesfrontierbutthe

frontieritselfwouldnotshift.

D)Theproductionpossibilitiesfrontierwouldshiftinward.

E)Thenumberofyoungworkerswouldincreasesotheproductionpossibilitiesfrontierwould

shiftoutward.

Answer:D

Topic:Productionpossibilitiesfrontier

Skill:Level4:Applyingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

15)AmajorearthquakeoccursinthecentralpartoftheUnitedStates.Whatimpactwouldthis

haveonthenation'sproductionpossibilitiesfrontierandwhy?

A)Itwouldshiftoutwardbecauseunemploymentwouldbereduced.

B)Nothingwouldhappenbecausethenationwouldstillhavethesamecapabilities.

C)Atradeoffwouldoccurtoreplacetheresourcesandgoodsdestroyed.

D)Itwouldshiftinwardbecausesomeofthenation'sresources,suchascapitalandlabor,would

bedestroyed.

E)Itwouldnotshiftbecausepeoplewouldgettoworktoreplaceanycapitalthatwasdestroyed.

Answer:D

Topic:Productionpossibilitiesfrontier

Skill:Level4:Applyingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

16)Whenalloftheavailablefactorsofproductionarebeingefficientlyemployed,the

A)economyisproducingatapointwithinitsPPF.

B)economyisproducingatapointonitsPPF.

C)economyisproducingatapointbeyonditsPPF.

D)PPFdisappears.

E)opportunitycostofchangingproductionisinfinite.

Answer:B

Topic:Attainablepoints

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

17)Inaproductionpossibilitiesfrontierdiagram,theattainableproductionpointsareshownas

A)onlythepointsontheproductionpossibilitiesfrontier.

B)onlythepointsbeyondtheproductionpossibilitiesfrontier.

C)onlythepointsinsidetheproductionpossibilitiesfrontier.

D)thepointsinsideandthepointsontheproductionpossibilitiesfrontier.

E)ANYoftheproductionpoints.

Answer:D

Topic:Attainablepoints

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

18)Intheproductionpossibilitiesfrontiermodel,anunattainablepointlies

A)onlyontheproductionpossibilitiesfrontieritself.

B)onlyinsidetheproductionpossibilitiesfrontier.

C)onlyoutsidetheproductionpossibilitiesfrontier.

D)bothonandoutsidetheproductionpossibilitiesfrontier.

E)Therearenounattainablepointsintheproductionpossibilitiesmodel.

Answer:C

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

19)Productionefficiencyisrepresentedbyaproductionpossibilitiesfrontier.

A)allpointson

B)allpointsinside

C)allpointsoutside

D)amovementalong

E)onlyonepointon

Answer:A

Topic:Productionefficiency

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

20)Ifaneconomycannotproducemoreofonegoodwithoutproducinglessofanothergood,this

impliesthatwhichofthefollowinghasbeenachieved?

A)allocativeefficiency

B)minimummarginalcost

C)PPFefficiency

D)productionefficiency

E)maximummarginalbenefit

Answer:D

Topic:Productionefficiency

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

21)Productionefficiencyoccurs

A)anywhereinsideorontheproductionpossibilitiesfrontier.

B)whenthetotalcostofproductionisminimized.

C)atallpointsontheproductionpossibilitiesfrontier.

D)atonlyonepointontheproductionpossibilitiesfrontier.

E)atallpointsinsidetheproductionpossibilitiesfrontier.

Answer:C

Topic:Productionefficiency

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

22)WhenproductionefficiencydoesNOToccur,

i.aneconomyisproducingatapointwithinitsPPF.

ii.thereareunemployedresources.

iii.allocativeefficiencycannotoccur.

A)ionly

B)iandii

C)iiionly

D)iandiii

E)i,ii,andin

Answer:E

Topic:Productionefficiency

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

23)Ifthereisunemploymentinaneconomy,thenthe

A)productionpossibilitiesfrontierwillshiftinwards.

B)economyisoperatingatanunattainablepoint.

C)productionpossibilitiesfrontierwillshiftoutwards.

D)economyisproducingatapointinsidetheproductionpossibilitiesfrontier.

E)productionpossibilitiesfrontiermustbebowedinward.

Answer:D

Topic:Attainablepoints,unemployment

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

24)Ifasocietymovesfromaperiodoftimewithsignificantunemploymenttoatimewithfull

employment,itsproductionpossibilitiesfrontierwill

A)shiftleftward.

B)shiftrightward.

C)notshiftbecausethesocietymovesfromonepointonthefrontiertoapointinsidethe

frontier.

D)notshiftbecausethesocietymovesfromapointinsidethefrontiertoapointonthefrontier.

E)notshiftbecausethesocietymovesfromonepointonthefrontiertoapointoutsidethe

frontier.

Answer:D

Topic:Attainablepoints,unemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

25)Supposethataneconomyiscurrentlyproducingatapointthatliesinsideofitsproduction

possibilitiesset.Whichofthefollowingwouldbestexplainthiscircumstance?

A)Theeconomydoesnothaveenoughresourcestoproduceatapointclosertothefrontierof

theproductionpossibilitiesset.

B)Theprevailingleveloftechnologypreventstheeconomyfromproducingatapointcloserto

thefrontieroftheproductionpossibilitiesset.

C)Theeconomyisexperiencingahighlevelofunemployment.

D)Anyoftheabovestatementscouldexplainthissituation.

E)Noneoftheabovestatementscouldexplainthissituation.

Answer:C

Topic:Attainablepoints,unemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

26)Whichofthefollowingstatementsiscorrect?

A)Anincreaseinproductivitymovestheeconomyfrominsidetheproductionpossibilities

frontiertothefrontieritself.

B)Anincreaseinproductivityshiftstheeconomyfromproducingatapointontheproduction

possibilitiesfrontiertoapointoutsidetheproductionpossibilitiesfrontier.

C)Anincreaseinunemploymentshiftstheeconomyfurtherinsideitsproductionpossibilities

frontier.

D)Anincreaseinunemploymentshiftstheeconomyfromapointoutsidetheproduction

possibilitiesfrontierbacktotheproductionpossibilitiesfrontier.

E)Areductioninunemploymentshiftstheentireproductionpossibilitiesfrontieroutward.

Answer:C

Topic:Attainablepoints,unemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

27)Apointontheproductionpossibilitiesfrontierreflectsan

A)attainablepointwithfullemploymentofallresources.

B)attainablepointwithoutfullemploymentofallresources.

C)unattainablepointwithfullemploymentofallresources.

D)unattainablepointwithoutfullemploymentofallresources.

E)Noneoftheaboveanswersiscorrect.

Answer:A

Topic:Attainablepoints,fullemployment

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

28)Supposeacountryoperatesonitsproductionpossibilityfrontierwhenitproduces1,000

booksand1,000tables.Thecombinationofreflects.

A)500booksand1,000tables;aninefficientbutattainablepoint

B)1,000booksand500tables;anefficientpoint

C)1,00()booksand1,00()tables;afreelunch

D)50()booksand50()tables;anattainableandefficientpoint

E)1,000booksand1,500tables;afreelunch

Answer:A

Topic:Attainablepoints,inefficiency

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

29)Consideraproductionpossibilityfrontierwithbooksandtables.Acombinationof1,000

booksand500tablesisonthefrontier.Whichofthefollowingaretrue?

i.Productionof700booksand400tablesisattainablebutinefficient.

ii.Productionof1,000booksand600tablesisunattainable.

iii.Productionof500booksand1,000tablesisinsidethefrontier.

A)iandii

B)i,iiandiii

C)iandiii

D)iiandiii

E)ionly

Answer:A

Topic:Attainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

BreadBooks

Possibility(number)(number)

A01,000

B1()0900

C200700

D300400

E4000

30)Thetableaboveshowsaproductionpossibilitiesfrontierforaneconomy.Whichofthe

followingcombinationsisunattainable?

A)0loavesofbreadand800books

B)100loavesofbreadand800books

C)200loavesofbreadand800books

D)30()loavesofbreadand200books

E)0loavesofbreadand0books

Answer:C

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

31)Thetableaboveshowsaproductionpossibilitiesfrontierforaneconomy.Iftheeconomy

triedtoproduceacombinationof250loavesofbreadand800books,

A)thereissomeunemployment.

B)thereisfullemployment.

C)thetradeoffbetweenbreadandbooksisinefficient.

D)itcannotproducethiscombinationbecauseitlacksenoughresourcesortechnology.

E)itisenjoyingafreelunch.

Answer:D

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

Icecream(millionsofgallonsperyear)

32)Thefigureaboveshowstheproductionpossibilitiesfrontierforacountry.Acombinationof

4milliongallonsofmilkand4milliongallonsoficecreamis

A)unattainable.

B)attainableandproductionefficient.

C)attainableandproductioninefficient.

D)unattainableandproductionefficient.

E)Moreinformationisneededtodetermineifthepointisattainableornot.

Answer:A

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

33)Thefigureaboveshowstheproductionpossibilitiesfrontierforacountry.Acombinationof

3milliongallonsofmilkand3milliongallonsoficecreamis

A)unattainable.

B)attainableandproductionefficient.

C)attainableandproductioninefficient.

D)unattainableandproductionefficient.

E)Moreinformationisneededtodetermineifthepointisattainableornot.

Answer:B

Topic:Attainablepoints,fullemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

34)Thefigureaboveshowstheproductionpossibilitiesfrontierforacountry.Acombinationof

2milliongallonsofmilkand2milliongallonsoficecreamis

A)unattainable.

B)attainableandproductionefficient.

C)attainableandproductioninefficient.

D)attainablebutmorethanproductionefficient.

E)Moreinformationisneededtodetermineifthepointisattainableornot.

Answer:C

Topic:Attainablepoints,unemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

Videotape(millionsperyear)

35)PointDintheabovePPFfigureis

A)anattainableproductioncombinationwithunemployedresources.

B)atradeoff.

C)anunattainableproductioncombination.

D)aproductioncombinationthatcanbeattainedonceresourcesarefullyemployed.

E)Moreinformationisneededtodeterminewhichoftheaboveanswersiscorrect.

Answer:C

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

36)Whichpointinthefigureaboveisanattainablecombinationthatwouldhaveunemployed

resources?

A)pointA

B)pointB

C)pointC

D)pointD

E)pointAandpointB

Answer:C

Topic:Attainablepoints,unemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

Pizzas(millionsperyear)

37)Thefigureaboveshowsanation'sproductionpossibilitiesfrontier.Inthefigure,pointA

shows

A)themaximumquantityofpizzathatcanbeproduced.

B)theminimumquantityofpizzathatthesocietymustproduce.

C)anunattainablepoint.

D)anattainablepointwithunemployedresources.

E)Moreinformationisneededtodeterminewhichoftheaboveanswersiscorrect.

Answer:A

Topic:Attainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

38)Thefigureaboveshowsanation'sproductionpossibilitiesfrontier.Inthefigure,pointB

shows

A)anunattainablepoint.

B)anattainablepoint.

C)apointwithafreelunch.

D)apointwithnotradeoff.

E)apointatwhichthereareunemployedresources.

Answer:A

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

SUVs(millionsperyear)

39)Thefigureaboveshowstheproductionpossibilitiesfrontierforacountry.Inorderfbritto

produceatpointE,the

A)countrywouldneedtoacquiremoreresourcesand/ormoreadvancedtechnology.

B)productionofcompactcarswouldneedtodecrease.

C)productionofSUVswouldneedtodecrease.

D)countrywouldneedtouseitsresourcesmoreefficiently.

E)countrywouldneedtodeterminethatcompactcarsandSUVsareequallyimportanttoit.

Answer:A

Topic:Unattainablepoints

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

40)Thefigureaboveshowstheproductionpossibilitiesfrontierfbracountry.Ifthecountryis

producingatpointD,thenthe

A)resourcesarebeingusedefficiently.

B)technologyassociatedwithproducingSUVsandcompactcarsisadvancing.

C)resourcesarenotbeingusedefficientlyand/orareunemployed.

D)productionofSUVsandcompactcarsismaximized.

E)NoneoftheaboveanswersiscorrectbecauseitisnotpossibletoproduceatpointD,

Answer:C

Topic:Attainablepoints,unemployment

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

41)Theabovefigureshowstheproductionpossibilityfrontierfbraneconomy.Thepointor

pointsthatareattainableandproductionefficientare

A)pointsBandC.

B)pointsA,B,andC.

C)pointE.

D)pointsA,B,C,andD.

E)pointsAandD.

Answer:B

Topic:Productionpossibilitiesfrontier

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

42)Theabovefigureshowstheproductionpossibilityfrontierforaneconomy.Thepointor

pointsthatareattainableare

A)pointsBandC.

B)pointsA,B,andC.

C)pointE.

D)pointsA,B,C,andD.

E)pointsAandD.

Answer:D

Topic:Productionpossibilitiesfrontier

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

43)Theabovefigureshowstheproductionpossibilityfrontierforaneconomy.Thepointor

pointsthatareNOTattainableare

A)pointsBandC.

B)pointsA,B,andC.

C)pointE.

D)pointsA,B,C,andD.

E)pointsAandD.

Answer:C

Topic:Productionpossibilitiesfrontier

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Analyticskills

44)InorderforIrelandtogrowmorepotatoes,woolproductionmustdecrease.Thissituationis

anexampleof

A)producingatapointthatliesbeyondthePPF.

B)zeroopportunitycost.

C)opportunitybenefit.

D)afreelunch.

E)atradeoff.

Answer:E

Topic:Tradeoffs

Skill:Level1:Definition

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

45)Aswemovealongtheproductionpossibilitiesfrontier,

A)theproductionofonegoodincreasesastheproductionoftheothergooddecreases.

B)thepossibilitiesoftradeoffsdiminish.

C)atradeoffisnotpossiblebecausenationsneedallgoods.

D)moreofbothgoodscanbeproduced.

E)lessofbothgoodscanbeproduced.

Answer:A

Topic:Tradeoffs

Skill:Level4:Applyingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

46)Whichofthefollowingstatementsiscorrect?

A)Ifcapitalisidle,theeconomyisproducingatitsfullpotential.

B)Theproductionpossibilitiesfrontiershowsthattherearenolimitstoproduction.

C)Atradeoffisalimitthatforcesanexchangeorasubstitutionofonethingforsomethingelse.

D)AnypointonorwithinthePPFisproductionefficient.

E)Noneoftheaboveanswersiscorrect.

Answer:C

Topic:Tradeoffs

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

47)Whenanationisproducingonitsproductionpossibilitiesfrontier,ifmoreresourcesareused

toproduceonegood,thentheproductionofothergoods

A)MUSTincrease.

B)MUSTdecrease.

C)MUSTremainthesame.

D)MUSTchange,buttheymightincreaseordecrease.

E)MIGHTincreaseifthenationcanproducemoreefficiently.

Answer:B

Topic:Tradeoffs

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

48)Thenegativeslopeoftheproductionpossibilitiesfrontierrepresentstheidea

A)thatfreelunchesarepossible.

B)oftradeoffs,thatinordertoproducemoreofonegood,thenationmustproducelessof

another.

C)ofunemployment.

D)ofinefficientproduction.

E)thatpricesriseaslessisproduced.

Answer:B

Topic:Tradeoffs

Skill:Level4:Applyingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

49)Amovementfromonepointonaproductionpossibilitiesfrontiertoanotherrepresents

A)atradeoff.

B)afreelunch.

C)fullemploymentoflaborbutnotcapital.

D)unemployment.

E)anadvanceintechnology.

Answer:A

Topic:Tradeoffs

Skill:Level3:Usingmodels

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

50)Thesaying"There'snosuchthingasafreelunch,"applies

A)whenthereissomeunemployment.

B)ontheproductionpossibilitiesfrontier.

C)tounattainablecombinationsofgoodsandservices.

D)whenmoreofonegoodcanbeproducedwithoutdecreasingproductionofanother.

E)atallpointsinsidethePPF.

Answer:B

Topic:Tradeoffs

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

51)Afreelunch(theabsenceofatradeoff)whentheproductionofagoodisincreasedis

possiblefortheentireeconomyonlyif

A)lessofsomeproductisproduced.

B)pricesaredecreased.

C)pricesareincreased.

D)resourcesareusedinefficiently.

E)thereisamovementalongthePPF.

Answer:D

Topic:Freelunches

Skill:Level2:Usingdefinitions

Section:Checkpoint3.1

Status:Old

AACSB:Reflectivethinking

52)Amovementfromapointinsidetheproductionpossibilitiesfrontiertoapointonthe

productionpossibilitiesfrontierrepresents

A)atradeoff.

B)afreelunch.

C)fullemploymentoflaborbutnotcapital.

D)unemploymentoflaborbutnotcapital.

E)aninfiniteopportunitycost.

Answer:B

Topic:Freelunches