Question:
1. On the production possibilities frontier graph, the closer the economy's production is to the origin of the graph and the farther away it is from the PPF,
a) the more unemployment exists.
b) the less unemployment exists.
c) the more guns are being produced.
d) the more butter is being produced.
e) none of the above is correct.
2.The discipline of economis primarily concerns itself with ________________________.
a) the production of goods and services society values the most
b) the business of buying and selling
c) employment of the factors of production
d) managing an economy's money supply
e) finding ways to keep government out of the economy
3. In order to increase its rate of economic growth, a nation would need to _______________________.
a) save more
b) save less
c) spend more for military goods
d) spend more for consumer goods
4. An inward shift of production possibilities curve (PPC) ___________________.
a) represents economic growth
b) means that the economy can produce more of both goods
c) occurs if there is an increase in the economy's stock of capital
d) takes place if there is an expansion of the labor force
e) means that previous levels of production are now unobtainable
5. if the production possibilities curve was a straight line,________________________.
a) the Law of Increasing Cost would still apply
b) the opportunity cost of producing one good would decrease as more of the other good is produced
c) the opportunity cost of producing one good would increase as more of that good is produced
d) the opportunity cost of producing one good would remain the same as more of that good is produced
6. If a nation is operating inside the Production Possibilities Curve, _____________________.
a) that nation must be in a recession
b) that nation must be experiencing price inflation
c) that nation is definitely not facing a recession
d) that nation must be facing a lower level of productivity
that nation must be facing either some unemployment, some decrease in productivity, or both