PRACTICE TEST #2 - PPC + S&D

Front

What point is currently impossible to achieve with the current state of technology? Options: Point G, Point H, Point A, Point E, Point F

Back

Point H

Front

The opportunity-cost versus gain for moving from point B to D can be best expressed as

Back

5 tanks lost for 7 cars gained

Front

The opportunity-cost versus gain for moving from point E to D can be best expressed as

Back

2 cars lost for 4 tanks gained

Front

The economy moves from point A to B, B to C, C to D, D to E, and E to F, the marginal gain (amount gained for each step, i.e. A to B) is

Back

decreasing

Front

Which point best represents an inefficient use of resources within the economy? Options: Point G, Point F, Point H, All points on the graph represent productive efficiency within the economy, Point A

Back

Point G

Front

The economy moves from point A to B, B to C, C to D, D to E, and E to F, the marginal opportunity cost (the OC for each step i.e. A to B, B to C, etc) is

Back

increasing

Front

The economy moves from point D to B, this could best be explained by

Back

a change in preferences for tanks over cars within the economy

Front

(In general) As a person consumes more and more of the same product, the marginal utility received ____________ so the price a person is willing and able to pay for the next unit ___________.

Back

decreases... ...decreases

Front

Quantity demanded

Back

the specific amount of a product demanded at a given price at a point in time

Front

An increase in Quantity demanded can best be described as

Back

a downward right movement along the Demand curve