1. Assume that an economy produces two types of goods, consumer goods and capital goods. It is currently operating on its production possibilities frontier, If the society wishes to consume at a level currently outside its production possibilities frontier it should a. use its resources more efficiently to reach the desired output b. produce a greater amount of capital goods and sacrifice consumption today c. wait for a technological change to hopefully shift the frontier far enough to reach the desired point d. produce more consumer goods 2. The difference between demand and quantity demanded is that a. demand is a single point and quantity demanded is a series b. demand is drawn as a continuous set of points creating a curve and quantity demanded is a single point on the demand curve c. demand is represented by various quantities that are purchased at that single price d. there is no difference between demand and quantity demanded 3. A market failure is when markets do not bring about a. profit maximization b. economic efficiency c. production of all goods that consumers desire d. production at the lowest possible average cost