On the diagram to the right, movement along the curve from points A to B to C illustrates O A. constant marginal opportunity costs. 0 B. increasing marginal opportunity costs. 0 C. reexive marginal opportunity costs. 0 D. decreasing marginal opportunity costs. Production Possibilities Automobiles 59,9 Refer to the table to the right. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 24 pizzas and 15 calzones would appear Quantity of Quantity of Pizzas Calzones O A. outside Tomaso's production possibilities frontier. Choice Produced Produced 48 0 O B. at the horizontal intercept of Tomaso's production possibilities frontier. 36 15 O C. along Tomaso's production possibilities frontier. MO OOD 24 30 O D. inside Tomaso's production possibilities frontier. 12 45 0 60An outward shift of a nation's production possibilities frontier represents 0 A. economic growth. O B. rising prices of the two goods on the production possibilities frontier model. 0 C. a situation in which a country produces more of one good and less of another. O D. an impossible situation. A production possibilities frontier: O A. shows the act of buying and selling. 0 B. shows the market for a good or service. 0 C. shows how participants in the market are linked. O D. shows how unlimited wants exceed the limited resources available to fulll those wants. 0 E. shows the maximum attainable combinations of two goods that may be produced with available resources. We can show economic efciency: 0 A. with points inside and on the production possibilities frontier. O B. with points on the production possibilities frontier. O C. with points on and outside the production possibilities frontier. O D. with points outside the production possibilities frontier. O E. with points inside the production possibilities frontier. We can show economic inefciency: O A. with points outside the production possibilities frontier. O B. with points on and outside the production possibilities frontier. O C. with points inside the production possibilities frontier. O D. with points inside and on the production possibilities frontier. O E. with points on the production possibilities frontier. Opportunity cost is O A. when unlimited wants exceed the limited resources available to fulll those wants. 0 B. when consumers and rms use all available information as they act to achieve their goals. 0 C. the highest valued alternative that must be given up to engage in an activity. 0 D. the idea that because of scarcity, producing more of one good or service means producing less of another good or service. The production possibilities frontiers depicted in the diagram to the right illustrate O A. technological advances only in the tank industry. 0 B. the likely result ofa ground war. 0 C. both the labor force and capital stock are increasing. 0 D. both the labor force and capital stock are decreasing. Production Possibilities Tanks Automobiles 99 The production possibilities frontiers depicted in the diagram to the right illustrate O A. increases in both the labor force and capital stock. 0 B. technological advances only in the tank industry. 0 C. technological advances only in the automobile industry. 0 D. technological advances in both the tank and automobile industries. Tanks Production Possibilities Automobiles 919 What does increasing marginal opportunity costs mean? O A. Increasing the production of a good requires larger and larger decreases in the production of another good. O B. Increasing the production of a good requires smaller and smaller decreases in the production of another good. 0 C. Increasing the production of a good requires decreases in the production of another good. 0 D. Production is not occurring on the production possibilities frontier. O E. The economy is unable to produce increasing quantities of goods and services. Use the following production possibilities frontier for a country to answer the following questions. Which point(s) are unattainable? Briey explain why. None of the points because they all are feasible. Points B, C, and D because they are on the production possibilities frontier. Point A because it is outside the production possibilities frontier. All the points because the production of each has an opportunity cost. OOOOO Point E because it is inside the production possibilities frontier. Capital goods PPF Consumption goods 9:9 In the diagram to the right, point C indicates an BMW's Production Choices at the Spartanburg Plant O A. efficient result. 1000- O B. unattainable result. 900- O C. inefficient result. 800- 700- G 600-... Quantity of roadsters produced per day 500- C .. .. . 400-.... . .. F 300- -... 200- 100- 0 100 200 300 400 500 600 700 800 900 1000 Quantity of SUVs produced per dayis concerned with what is, and is concerned with what ought to be. Economics is about which measures the costs and benefits of different courses of action