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WorksheetsThinking Like an Economist-Part two
Total questions: 12
Worksheet time: 14mins
Points outside the production possibilities frontier represent impossible levels of production.
True
False
When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.
True
False
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
society’s preferences.
the available production technology.
a fair distribution of the output.
the available demand for the output.
A production possibilities frontier shifts outward when
the economy experiences economic growth.
the desires of the economy’s citizens change.
at least one of the basic principles of economics is violated.
opportunity costs are lessened.
Positive statements are
macroeconomic
microeconomic
statements of description that can be tested
statements of prescription that involve value judgments
Suppose there is a production possibilities frontier (PPF) for coffee and cheese. Which of the following situations would shift the PPF inward (toward the origin)?
A. A severe weather event that destroys much of the economy’s productive capacity.
B. Improved education of the work force.
C. Discovery of a new, cheaper source of milk for making cheese.
D. Increased popularity of coffee, as compared with cheese.
Predicting how an increase in the price of pizza will affect the total revenue of a pizza restaurant
Macroeconomics
Microeconomic
