FEE PPC

Which factor of production would include fork lifts controlled by robotics, air conditioning systems & bar code readers?

• Land

• Labor

• Capital

• Entrepreneurship

Why do some production possibilities curves bow outward?

• To produce more of a good a increasing amount of another must be sacrificed.

• To produce more of a good a constant amount of another must be sacrificed.

• Increasing wants need to be satisfied.

• Production takes time.

Which point demonstrates unemployment of workers?

• a

• b

• c

• e

Which point demonstrates efficient use of resources?

• a

• only b

• e

• b, c, & d

Which point indicates that resources are NOT fully utilized or are inefficient?

• a

• b

• c

• e

What point represents a point that is unattainable given the current level of resources?

• a

• b

• c

• e

What is the opportunity cost of moving production point b to point c?

• 13 cheese

• 2 cheese

• 6 cider

• 12 cider

In the figure, moving from point d to point a requires

• Technological change

• A decrease in unemployment

• Decreasing output of cider to boost the output of cheese

• Both capital accumulation and a decrease in unemployment

Suppose a country is at point d. A movement to point ________ means that the country ________.

• b; must give up 12 cider to increase cheese production

• c; gains more cheese and cider at the same time

• f; is not operating efficiently

• a; is producing at an inefficient point

Any production point outside the production possibilities frontier

• is currently unattainable.

• is attainable only if prices fall.

• is associated with unused resources.

• is attainable only if prices rise.