351-399 Eco

351.Where can an economy not produce

• a. inside its production possibilities frontier

• b. on its production possibilities frontier

• c. outside its production possibilities frontier

• d. at the endpoints of its production possibilities frontier

352.An economic outcome is said to be efficient if the economy is

• a. using all of the scarce resources it has available.

• b. conserving on resources, rather than using all available resources.

• c. getting all it can get from the scarce resources it has available.

• d. able to produce more than what is currently being produced without additional resources.

353.Production is efficient if the economy is producing at a point

• a. on the production possibilities frontier.

• b. outside the production possibilities frontier.

• c. on or inside the production possibilities frontier.

• d. inside the production possibilities frontier.

354.If an economy is producing efficiently, then

• a. there is no way to produce more of one good without producing less of another good.
  

• b. it is possible to produce more of both goods without increasing the quantities of inputs that
  are being used.

• c. it is possible to produce more of one good without producing less of another good.

• d. it is not possible to produce more of any good at any cost.

355.An economy's production of two goods is efficient if

• a. all members of society consume equal portions of the goods.
  

• b. the goods are produced using only some of society's available resources.

• c. it is impossible to produce more of one good without producing less of the other.

• d. the opportunity cost of producing more of one good is zero.

356.When an economy is operating at a point on its production possibilities frontier, then

• a. consumers are content with the mix of goods and services that is being produced.

  
  

• b. there is no way to produce more of one good without producing less of the other.

• c. equal amounts of the two goods are being produced.

• d. All of the above are correct.

357.Efficiency is illustrated by

• a. both the production possibilities frontier and the circular-flow diagram.

• b. neither the production possibilities frontier nor the circular-flow diagram.

• c. the production possibilities frontier only.

• d. the circular-flow diagram only.

358.Suppose a nation is currently producing at a point inside its production possibilities frontier. We
know that

• a. the nation is producing beyond its capacity, so inflation will occur.

  
  

• b. the nation is not using all available resources or is using inferior technology or both.

• c. the nation is producing an efficient combination of goods.

• d. there will be a large opportunity cost if the nation tries to increase production of any good.

359.When an economy is operating inside its production possibilities frontier, we know that

• a. there are unused resources or inefficiencies in the economy.

• b. all of the economy's resources are fully employed.

• c. economic growth would have to occur in order for the economy to move to a point on the
  frontier.

• d. in order to produce more of one good, the economy would have to give up some of the
  other good.

360.It is possible for an economy to increase its production of both goods if the economy

• a. moves downward and to the right along its production possibilities frontier and the frontier
  is bowed outward.
  

• b. moves upward and to the left along its production possibilities frontier and the frontier is
  bowed outward.

• c. moves in either direction along its production possibilities frontier and the frontier is a
  straight line.

• d. moves from a situation of inefficient production to a situation of efficient production.