Microeconomics Quiz

Which of the following concepts is NOT illustrated by the production possibilities frontier?

• efficiency

• opportunity cost

• equity

• tradeoffs

On the production possibilities frontier shown, which point or points are possible for this economy to produce?

• A, B, C, D

• A, B, C, F

• A, B, C, D, E, F

• D

On the production possibilities frontier shown, which point or points are inefficient?

• A, B, C

• E, F

• B

• D

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

• amount of the other good which must be given up.

• market price of the additional amount produced.

• amount of resources which must be devoted to its production.

• number of dollars which must be spent to produce it.

A production possibilities frontier will be linear and not bowed out if

• no tradeoffs exist.

• the tradeoff between the two goods is always at a constant rate.

• the unemployment rate is zero.

• resources are allocated efficiently.

In the production possibilities frontier shown, the shift of the frontier from A to B was most likely caused by which of the following?

• more capital available in the economy

• more labor available in the economy

• a general technological breakthrough

• technological improvement in the production of clothing

In the production possibilities frontier shown, what is the opportunity cost to society of the movement from point D to point B?

• 600 pretzels

• 800 pretzels

• 250 pretzels

• 100 pretzels

In the graph shown, the slope of the curve between points A and B is

• -2

• -1/2

• 1/2

• 2

If labor in Mexico is less productive than labor in the United States in all areas of production,

• neither nation can benefit from trade.

• Mexico can benefit from trade but the United States cannot.

• both nations can benefit from trade.

• Mexico will not have a comparative advantage in any good.

Refer to the table shown. For the Farmer, the opportunity cost of 1 pound of meat is

• 1/2 pound of potatoes

• 2 pounds of potatoes.

• 4 hours of labor.

• 8 hours of labor.