A country is responsible for producing guns for military defense and school lunches for students who can't afford it ("butter"). The opportunity cost of producing more guns is..
a)
decrease in the # of lunches divided by the increase in the # of guns
b)
increase in the # of guns divided by the decrease in the # of lunches
c)
decrease in the # of guns divided by the increase in the # of lunches
d)
increase in the # of lunches divided by the decrease in the # of guns
2.
True or False: Everything that is scarce requires a choice, and these choices always involve a tradeoff.
a)
True
b)
False
3.
If the production of good X increases by 3 units and production of good Y decreases by one unit, then the opportunity cost of one unit of X is ____ unit(s) of Y.
a)
3
b)
1
c)
1/3
d)
4
4.
The table above shows the production possibilities for a country. Based on the table, which of the following production combinations is a possibility?
a)
28 pizzas and 5 pairs of shoes
b)
3 pairs of shoes and 23 pizzas
c)
2 pairs of shoes and 20 pizzas
d)
4 pairs of shoes and 15 pizzas
5.
Based on the table, if the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.
a)
26
b)
23
c)
3
d)
2
6.
What is the production possibilities curve?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
7.
What is opportunity cost?
a)
a graph that shows how much an economy can produce between 2 goods
b)
how much money something is
c)
the opportunity one has to give up in order to gain something else
d)
land, labor, capital, entrepreneurs
8.
How do you satisfy your unlimited wants in a world of limited resources?
a)
by making more money
b)
by making choices
c)
by stealing
d)
by setting a budget
9.
PPC stands for...
a)
Production Possibilities Curve
b)
Production Possibilities Cat
10.
The production possibilities curve is an illustration of what?
a)
Opportunity costs and trade-offs
b)
Only opportunity costs
c)
Only trade-offs
d)
none of the above
11.
I bougt a cup of Starbucks coffee for $1.50. I decided to have another cup. What was my cost?
a)
My opportunity cost was $1.50
b)
My Marginal Cost was $1.50
c)
There was no marginal or opportunity cost
12.
Which of the following statements about a production possibilities curve is true? There may be more than one correct answer. Choose all correct answers.
a)
to produce more of one product, you must give up production of another.
b)
all points on the curve are efficient.
c)
all points outside the curve are unattainable with current resources.
d)
all points inside the curve are inefficient.
e)
None of these statements are true.
13.
If a new technology lowered costs and increased output in both the production of capital goods and the production of consumer goods, we would expect
a)
the entire production possibilities curve to shift out and right.
b)
the entire production possibilities curve to shift in and left.
c)
The number of capital goods produced to increase and the number of consumer goods produced to decrease.
d)
The number of consumer goods produced to increase and the number of capital goods produced to decrease.
14.
A basketball coach is performing a cost/benefit analysis in order to determine if more hours of practice would help the team score more points. The coach's action is an example of
a)
individual trade-offs.
b)
opportunity cost.
c)
marginal analysis.
d)
marginal benefit.
15.
An opportunity cost is
a)
the best alternative that is given up when a decision is made.
b)
the worst alternative that is given up when a decision is made.
c)
a choice that is made when no alternative is very good.
d)
the cost of making decisions related to producing goods.
16.
a decision-making process in which you compare what you will sacrifice and gain by the specific action
a)
marginal benefit
b)
marginal cost
c)
cost/benefit analysis
d)
Thinking at the margin
17.
the extra benefit of adding one unit
a)
marginal benefit
b)
marginal cost
c)
cost/benefit analysis
d)
thinking at the margin
18.
If a point lies on the curve this means the company is being efficient. If a point lies inside the curve, this tells the company what?
a)
They are being over efficient
b)
They are not efficient
c)
It is impossible
d)
None of the above
19.
What does point B represent?
a)
Production at greater than the country's minimum potential
b)
Production is less than the country's minimum potential
c)
Production is greater than the country's maximum potential
d)
Production at the country's maximum potential
20.
Economic growth causes the production possibilities frontier to contract
a)
True
b)
Falso
c)
Maybe
d)
455
21.
Which of the following would result in a change in the production possibilities frontier in the mythical country Alpha?
a)
an influx of immigrants from other countries
b)
the discovery of an abundant natural resource
c)
a long drought
d)
All of these ansers ( all of the above)
แป้นคำตอบ
ppf
คำถามทั้งหมด: 21
1.
a) decrease in the # of lunches divided by the increase in the # of guns
2.
a) True
3.
c) 1/3
4.
c) 2 pairs of shoes and 20 pizzas
5.
c) 3
6.
a) a graph that shows how much an economy can produce between 2 goods
7.
c) the opportunity one has to give up in order to gain something else
8.
b) by making choices
9.
a) Production Possibilities Curve
10.
a) Opportunity costs and trade-offs
11.
b)
My Marginal Cost was $1.50
12.
a)
to produce more of one product, you must give up production of another.
, b)
all points on the curve are efficient.
, c)
all points outside the curve are unattainable with current resources.
, d)
all points inside the curve are inefficient.
13.
a)
the entire production possibilities curve to shift out and right.
14.
c)
marginal analysis.
15.
a)
the best alternative that is given up when a decision is made.