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Macro 1.2-Opportunity Cost & PPF MCQ Open Practice

Last updated 5 months ago

10 questions

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.

1

Resource use is allocative efficient

1

Why is a production possibilities frontier bowed out?

1

As we move along the production possibilities frontier,

1

To calculate the opportunity cost per unit, you divide the decrease in the quantity of the forgone item by the

1

When all of the available factors of production are being efficiently employed, the

1

If there is unemployment in an economy, then the

1

When society must decrease the production of something in order to produce more of another good or service, society has necessarily achieved

1

The movement from Curve 1 to Curve 2 indicates:

1

In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of