4. Which of the statements below is a reason why an economy might produce a level of output that is beneath its production-possibility frontier?

a. The available resources are not equally suited to the production of both outputs.

b. The available body of technological knowledge is not being fully utilized.

c. Society prefers one product over the other.

d. There are no frontiers left anymore.

5. Which of the following statements is false when an economy is on its PPF?

a.More of one product cannot be produced without sacrificing some of the other.

b. Resources are fully employed.

c. The economy is producing with productive efficiency.

d. Consumers will have all that they need.

e. A strike by workers will move the economy beneath the PPF.

6. Which of the following are measured along the axes of a PPF graph?

a. quantities of productive inputs or resources.

b. quantities of finished commodities.

c. values of finished commodities.

13. The philosophy of laissez-faire means that:

a. government controls the economy through a central planning board.

b firms are allowed to monopolize industries in the economy to make greater profits.

c. barter is used instead of money to make all transactions.

d. the government uses taxing and spending policies to redistribute income and wealth.

e. government interferes as little as possible in economic affairs.