Multiple Choice: Bread Books Possibility (number) (number) A U 1 .000 B 1 {1] 900 C Ell] 700 D 300 4(1) E 400 [l 1) The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable? A) 0 loaves of bread and 800 books B) 100 loaves of bread and 800 books C) 200 loaves of bread and 800 books D) 300 loaves of bread and 200 books E) 0 loaves of bread and 0 books Possibility Robots Pizza 40 39 37 QUAUNAC 34 30 20 0 2) The table above shows a nation's production possibilities frontier. The opportunity cost of a robot between combination D and E is A) 4 pizzas. B) 34 pizzas. C) 30 pizzas. D) 1/4 of a pizza. E) undefined because neither point is production efficient.3) Which of the following will shift the production possibilities curve to the right? A) an increase in the unemployment rate from (i to 8 percent B) a decline in the efficiency with which the present labor force is allocated C) a decrease in the unemployment rate from 8 to 6 percent D) a technological advance that allows farmers to produce more output from given inputs 4) A person has a comparative advantage in producing a particular good if that person A) has higher productivity in producing it than anyone else has. B) can produce it at lower opportunity cost than anyone else can. C) has less desire to consume that good than anyone else has. D) has more human capital related to that good than anyone else has. U1 U The idea of comparative advantage implies that people or countries A) should specialize in the production of goods. B) can gain from trading. C) can consume at a point outside their production possibilities frontier. D) all of the above a) The four factors of production are: A) land, labor, capital, and money B) land, labor, capital, and entrepreneurial ability C) labor, capital, technology, and entrepreneurial ability D) labor, capital, entrepreneurial ability, and money 7") Human capital can be increased through A) investment in new technology. B) education, onthejob training, and work experience. C) investment in new machinery. D) decreases in population. E) increasing the nation's production of consumption goods. 8) If a society moves from a period of time with signicant unemployment to a time with full employment, its production possibilities frontier will A) shift leftward. B) shift rightward. C) not shift because the society moves from one point on the frontier to a point inside the frontier. D) not shift because the society moves from a point inside the frontier to a point on the frontier. E) not shift because the society moves from one point on the frontier to a point outside the frontier 9) Other things equal, which of the following would shift an economy's production possibilities curve to the left? A. the discovery of a lowcost means of generating and storing solar energy B. the entrance of more women into the labor force C. a law requiring mandatory retirement from the labor force at age 55 D. an increase in the proportion of total output that consists of capital or investment good. 10) At one point along a production possibilities curve, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same production possibilities curve, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is A) 775 ofa ton of bananas per ton of coffee. B) If 2 of a ton of bananas per ton of coffee. C) 5/7 ofa ton of bananas per ton of coffee. D) 2 tons of bananas per ton of coffee. 12 Shirts Maria's 10 PPF 8 Anna's PPF 2 10 15 Ties 11) Anna and Maria produce shirts and ties. The figure above shows Anna's PPF and Maria's PPF. Anna and Maria can achieve the gains from trade if Anna produces and Maria produces A) ties; shirts B) shirts and ties; only ties C) only ties; shirts and ties D) shirts; ties