Refer to Figure 2-2. Boxes A and B of this circular-flow diagram represent

the markets for goods and services and the markets for financial assets.

the markets for goods and the markets for services.

Refer to Figure 2-2. Boxes C and D of this circular-flow diagram represent

the markets for goods and services and the markets for factors of production.

the markets for goods and services and the markets for financial assets.

Refer to Figure 2-2. If Box A of this circular-flow diagram represents firms, then which box represents households?

Any one of the other boxes (B, C, or D) could represent households.

Refer to Figure 2-2. If households are sellers in the markets represented by Box D of this circular-flow diagram, then

Box D must represent the markets for factors of production.

Box C must represent the markets for goods and services.

firms are buyers in the markets represented by Box D.

Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

firms are sellers in the markets represented by Box C.

Box C must represent the markets for the factors of production.

Box D must represent the markets for goods and services.

Refer to Figure 2-3. Which of the following is an activity undertaken by the actors in rectangle 2?

produce and sell goods and services

hire and use factors of production

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

the available production technology.

a fair distribution of the output.

the available demand for the output.

When constructing a production possibilities frontier, which of the following assumptions is not made?

The quantities of the factors of production that are available are increasing over the relevant time period.

The economy produces only two goods or two types of goods.

Firms produce goods using factors of production.

The technology available to firms is given.

Any point on a country’s production possibilities frontier represents a combination of two goods that an economy

can produce using all available resources and technology.

can produce using some portion, but not all, of its resources and technology.

may be able to produce in the future with more resources and/or superior technology.

Which of the following is not an assumption of the productions possibilities frontier?

There is a fixed quantity of money.

A country produces only two goods or types of goods.

The amount of available resources does not change.

Which of the following is a correct statement about production possibilities frontiers?

An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.

An economy can produce only on the production possibilities frontier.

An economy can produce at any point inside or outside a production possibilities frontier.

An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.

Where can an economy not produce?

outside its production possibilities frontier

inside its production possibilities frontier

on its production possibilities frontier

at the endpoints of its production possibilities frontier

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

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

using all of the scarce resources it has available.

conserving on resources, rather than using all available resources.

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

Production is efficient if the economy is producing at a point

on the production possibilities frontier.

outside the production possibilities frontier.

on or inside the production possibilities frontier.

inside the production possibilities frontier.

If an economy is producing efficiently, then

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

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

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

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

An economy’s production of two goods is efficient if

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

all members of society consume equal portions of the goods.

the goods are produced using only some of society’s available resources.

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

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

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

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

equal amounts of the two goods are being produced.

Efficiency is illustrated by

the production possibilities frontier only.

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

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

the circular-flow diagram only.

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

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

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

the nation is producing an efficient combination of goods.

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

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

there are unused resources or inefficiencies in the economy.

all of the economy’s resources are fully employed.

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

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

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

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

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

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

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

Unemployment would cause an economy to

produce inside its production possibilities frontier.

produce on its production possibilities frontier.

produce outside its production possibilities frontier.

experience an inward shift of its production possibilities frontier.

The production possibilities frontier provides an illustration of the principle that

trade can make everyone better off.

governments can sometimes improve market outcomes.

The production possibilities frontier illustrates

the trade-off between efficiency and equality.

the combination of output that an economy should produce.

the combination of output that each member of society should consume.

Which of the following trade-offs does the production possibilities frontier illustrate?

Once an economy has reached the efficient points on its production possibilities frontier, the only way of getting more of one good is to get less of the other.

If an economy wants to increase efficiency in production, then it must sacrifice equality in consumption.

For an economy to consume more of one good, it must stop consuming the other good entirely.

For an economy to produce and consume goods, it must sacrifice environmental quality.

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

amount of the other good that must be given up.

market price of the additional amount produced.

amount of resources that must be devoted to its production.

number of dollars that must be spent to produce it.

The bowed shape of the production possibilities frontier can be explained by the fact that

the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.

economic growth is always occurring.

the only way to get more of one good is to get less of the other.

Economists believe that production possibilities frontiers are often bowed because

resources are not completely adaptable.

trade-offs inevitably cause unemployment.

opportunity costs are constant.

On a bowed production possibilities frontier, as you move down along the curve

more of one good must be given up to receive one unit of the other good.

the available production technology does not change.

the opportunity cost increases.

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

increases as more of the good is produced.

decreases as more of the good is produced.

does not change as more of the good is produced.

may increase, decrease, or not change as more of the good is produced.

Production possibilities frontiers are usually bowed outward. This is because

resources are specialized; that is, some are better at producing particular goods rather than other goods.

the more resources a society uses to produce one good, the fewer resources it has available to produce another good.

the opportunity cost of producing a good decreases as more and more of that good is produced.

of the effects of technological change.

A production possibilities frontier can shift outward if

there is a technological improvement.

the government increases the amount of money in the economy.

resources are shifted from the production of one good to the production of the other good.

the economy abandons inefficient production methods in favor of efficient production methods.

sec2.1.2

Authored by NGOC NGUYEN

Social Studies

12th Grade

Used 1+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

81 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

interest

capital

spending by households on goods

spending by households on services

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

spending

revenue

income

wages, rent, and profit

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

spending

revenue

income

wages, rent, and profit

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Among economic models, the circular-flow diagram is unusual in that it

drastically simplifies the real world

features more than one type of market

features flows of dollars

does not involve mathematics

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the circular-flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates

in the markets for factors of production exchanging labor for income

in the markets for factors of production exchanging flowers for revenue

in the markets for goods and services exchanging flowers for wages, rent, and profit

in the markets for goods and services exchanging labor for income

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the circular-flow diagram, if Denny is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton’s lawn,

the $50 represents a cost of production for Denny’s firm

the $50 represents wages, rent, and profit to Denny’s firm

Denny acts as a firm who interacted in the markets for factors of production with Mrs. Pendleton

Denny acts as a firm who interacted in the markets for goods and services with Mrs. Pendleton

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Refer to Figure 2-1. Which arrow represents the flow of goods and services?

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Popular Resources on Wayground

8 questions

Spartan Way - Classroom Responsible

Quiz

•

9th - 12th Grade

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

14 questions

Boundaries & Healthy Relationships

Lesson

•

6th - 8th Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

3 questions

Integrity and Your Health

Lesson

•

6th - 8th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

9 questions

FOREST Perception

Lesson

•

20 questions

Main Idea and Details

Quiz

•

5th Grade

Discover more resources for Social Studies

38 questions

Unit 6 Key Terms

Quiz

•

11th Grade - University

10 questions

Boss Battle- Quizziz

Quiz

•

12th Grade

55 questions

Unit 12: World War I

Quiz

•

8th - 12th Grade

35 questions

Early Cold War Review

Quiz

•

9th - 12th Grade

20 questions

Legislative Branch review - Congress

Quiz

•

12th Grade

18 questions

USHC 6 1920s to Mass Advertising

Quiz

•

9th - 12th Grade

5 questions

10.2 Regional Development DOL

Quiz

•

9th - 12th Grade

23 questions

USHC 6 FDR and The New Deal Programs

Quiz

•

9th - 12th Grade

sec2.1.2

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Among economic models, the circular-flow diagram is unusual in that it

According to the circular-flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates

According to the circular-flow diagram, if Denny is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton’s lawn,

Refer to Figure 2-1. Which arrow represents the flow of goods and services?

Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Refer to Figure 2-1. Which arrow represents the flow of land, labor, and capital?

Refer to Figure 2-1. Which arrow represents the flow of income payments?

Access all questions and much more by creating a free account

Popular Resources on Wayground

Discover more resources for Social Studies