Macro 1.2-Opportunity Cost & PPF MCQ Open Practice
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Last updated 9 months ago
10 questions
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Question 1
1.
If there is increasing opportunity cost, then when moving downward on a production possibilities frontier, the opportunity cost of the good on the horizontal axis ____ as more of the good is produced.
Question 2
2.
Resource use is allocative efficient
Question 3
3.
Why is a production possibilities frontier bowed out?
Question 4
4.
As we move along the production possibilities frontier,
Question 5
5.
To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the
Question 6
6.
When all of the available factors of production are being efficiently employed, the
Question 7
7.
If there is unemployment in an economy, then the
Question 8
8.
When society must decrease the production of something in order to produce more of another good or service, society has necessarily achieved
Question 9
9.
The movement from Curve 1 to Curve 2 indicates:
Question 10
10.
In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of
decreases and the PPF gets flatter
increases and the PPF gets steeper
does not change and the PPF gets steeper
at all points either on or within the PPF because all these production points are attainable.
when most resources are fully employed.
when it is not possible to produce more of one good.
The bowed shape indicates that opportunity cost at first increases at a decreasing rate, and then begins to increase at an increasing rate.
The bowed shape reflects increasing opportunity cost.
The bowed shape reflects decreasing opportunity cost.
the production of one good increases as the production of the other good decreases.
a tradeoff is not possible because nations need all goods.
price of the item forgone.
decrease in the quantity of the other item.
price of the item obtained and then multiply by the price of the item forgone.
PPF disappears.
opportunity cost of changing production is infinite.
economy is producing at a point within its PPF.
economy is producing at a point inside the production possibilities frontier.
production possibilities frontier must be bowed inward.