When constructing a production possibilities frontier, which of the following assumptions is not made? (A) A country produces only two goods or types of goods. (B) The amount of available resources does not change. The technology available to firms is given. There is a fixed quantity of money.

When constructing a production possibilities frontier, which of the following assumptions is not made? (A) A country produces only two goods or types of goods. (B) The amount of available resources does not change. The technology available to firms is given. There is a fixed quantity of money.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 6SQP

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Question

When constructing a production possibilities frontier, which of the following assumptions is not made?
(A) A country produces only two goods or types of goods.
(B) The amount of available resources does not change.
The technology available to firms is given.
There is a fixed quantity of money.

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A production possibilities curve that is a straight line represents the case of Group of answer A. choices constantcosts. B. constant opportunity costs but increasing real costs. C. constant opportunity costs but decreasing real costs. D. increasingCosts.
Use the information in the table to answer the below questions. Production Possibilities Frontier Points Number of Bagels Number of Shirts A 15,000 0 B 14,000 100 C 12,000 200 D 9,000 300 E 5,000 400 F 0 500 What must be done in order to produce a combination of 12,000 bagels and 400 shirts?
Is it true or false for each part. Part A. The negative slope of a production possibilities frontier is a graphic representation of opportunity cost. Part B. Since it is a centrally planned economy, China does not face opportunity costs when economic decisions are made. Part C. Scarcity can be measured only through the use of monetary costs.
Movement along a production possibilities curve shows which of the following? a. The trade-offs society faces b. The total amount of available resources c. The combination of inputs required for a given output d. The relationship between the price of an input and the quantity demanded e. The decrease in efficiency
Scarcity is represented on the production possibilities frontier by the amount of the good on the horizontal axis forgone. the fact that there are only two goods in the diagram. technological progress. the fact there are attainable and unattainable points.
production possibilities frontier can shift outward if Select one: a. government increases the amount of money in the economy. b. there is a technological improvement. c. the economy abandons inefficient production methods in favour of efficient production methods. d. resources are shifted from the production of one good to the production of the other good.
Any point on a country's production possibilities frontier represents a combination of two goods that an economy: Select one: a. may be able to produce in the future with more resources and/or superior technology. b. can produce using some portion, but not all, of its resources and technology c. can produce using all available resources and technology. d. will never be able to produce.
Suppose a production possibilities frontier includes the following combinations: Cars Washing Machines 0 1,000 100 600 200 0 What is the cost of producing an additional washing machine when 50 cars are being produced? When 150 cars are being produced? What do your answers tell you about opportunity costs?
During the Iraq War many of Iraq's oil refineries were destroyed. This would best be represented by a A) movement up Iraq's production possibility frontier. B) shift of Iraq's production possibility frontier toward the origin. C) movement off Iraq's production possibility frontier to some point inside the frontier. D) movement down Iraq's production possibility frontier.
Why does a production possibilities frontier have to be downward sloping and have a bowed out shape? The present choice between investing in capital goods and producing consumer goods now affects the ability of an economy to produce in the future. Explain.
A linear production possibilities curve indicates which of the following? a. Constant opportunity costs b. Decreasing opportunity costs c. Increasing opportunity costs d. Diminishing marginal returns e. Labor-intensive production