Which of the following points would best represent unemployment of resources
W
X
Y
Z
Which of the following BEST describes point Y?
Point Y represents a productively efficient combination of output using current resources.
Point Y represents an underutilization of resources.
Point Y represents an allocatively efficient combination of output using current resources.
Point Y represents a combination that cannot be produced with current resources.
Assume that this society is currently producing at combination X, where they are allocating more resources toward the production of capital goods (physical capital) than consumer goods (clothing, toys, etc.). Which of the following is the most likely result of the allocation choice?
Consumers will petition the government to reallocate resources toward Point W.
Productive capacity will increase, enabling the PPC to shift out toward Point Y.
Few consumer choices will be available, and the economy will decline to point Z.
There will be an overproduction of capital goods, leading to a collapse of the market.
The Production Possibilities Curve above shows the trade-off between a company's production of balls (Y-axis) and caps (X-axis). What is the opportunity cost of moving from point D to point C ?
65 caps
19 balls
35 balls
15 caps
The leftward shift of the production possibilities curve suggests that
