Which point(s) are inefcient? Briefly explain why. 0 A. F'oints B, C, and D because they are on the production possibilities frontier. O B. Points E, B, C, and D because they are attainable. O C. Points B, C, D, and A because they are unattainable. O D. F'oint E because production there is not using all available resources. 0 E. PointA because it is unattainable. At which point is the country's future growth rate likely to be the highest? Briey explain why. O A. Point A because it is where the production possibilities frontier will shift with growth. 0 B. Point B because it is where the most resources are used to produce capital goods. 0 C. F'oint D because it is where the most resources are used to produce htbsjfxlitenprodpearsonmig.convapilvprintfenusfhighered 9f11f21, 12:17 PM _ Module 2 Homework: Production PossibililjesNikelas NgL consumption goods. O D. Point E because it is where resources are saved for investments. O E. F'oint C because it is an eflicient point where a mix of capital and consumption goods are produced. 2. 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. F'oints B, C, and D because they are on the production possibilities frontier. Point A because it is outside the production possibilities frontier. Capital goods All the points because the production of E D each has an opportunity cost. o 0000 Point E because it is inside the production possibilities frontier. Which point(s) are efcient? Briefly explain why. Consumption goods O Point A because it is where the most capital and consumption goods combined are produoed. F'oint E because it is inside the production possibilities frontier. F'oint B because it is where the most resources are used to produce capital goods. 0 Points B, C, and D because this is where maximum output is produced with available resources. O Points E, B, C, and D because they are attainable. 3. 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 F 300-... 200- 100- 0 100 200 300 400 500 600 700 800 900 1000 Quantity of SUVs produced per day 4. On the diagram to the right, movement along the curve from points A to B to C illustrates Production Possibilities O A. constant marginal opportunity costs. O B. increasing marginal opportunity costs. O C. reflexive marginal opportunity costs. A O D. decreasing marginal opportunity costs. 350 P Tanks 200 C :200 :400 Automobiles5. Refer to the table to the right. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 24 Quantity of Quantity of pizzas and 30 calzones would appear Pizzas Calzones Choice Produced Produced O A. along Tomaso's production possibilities 18 0 frontier. 36 15 O B. inside Tomaso's production possibilities MOODD 24 30 frontier. 12 45 0 60 O C. outside Tomaso's production possibilities frontier. O D. at the horizontal intercept of Tomaso's production possibilities frontier. 6. Refer to the table to the right. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 36 Quantity of Quantity of pizzas and 30 calzones would appear Pizzas Calzones Choice Produced Produced O A. at the horizontal intercept of Tomaso's 48 production possibilities frontier. 36 15 O B. inside Tomaso's production possibilities moODD 24 30 rontier. 12 45 60 O C. along Tomaso's production possibilities frontier. O D. outside Tomaso's production possibilities frontier. 7. Refer to the table to the right. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 24 Quantity of Quantity of pizzas and 15 calzones would appear Pizzas Calzones Choice Produced Produced O A. outside Tomaso's production possibilities A 48 0 frontier. 36 15 O B. at the horizontal intercept of Tomaso's 24 30 MOOD production possibilities frontier. 12 45 60 O C. along Tomaso's production possibilities frontier. O D. inside Tomaso's production possibilities frontier.We can show economic inefficiency: 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. 10. Opportunity cost is O A. when unlimited wants exceed the limited resources available to fulfill those wants. O B. when consumers and firms use all available information as they act to achieve their goals. O C. the highest valued alternative that must be given up to engage in an activity. O D. the idea that because of scarcity, producing more of one good or service means producing less of another good or service.3. An outward shift of a nation's production possibilities frontier represents 0 A. economic growth. 0 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. 0 D. an impossible situation. hmlszlhd it.en'prod.peorsonung.mm.'apiiv1 .'printienusr'highered 4J6 9:11.21, 12:13\"r PM Module 2 Homework: Production PossibilitiesNikelas Nguyen 9. 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. 11. The production possibilities frontiers depicted in the diagram to the right illustrate Production Possibilities O A. technological advances only in the tank industry. 0 B. the likely result of a ground war. O 0. both the labor force and capital stock are increasing. 0 D. both the labor force and capital stock are '2 decreasing. I2 H Automobiles 12. The production possibilities frontiers depicted in the diagram to the right illustrate Production Possibilities O A. increases in both the labor force and capital stock. 0 B. technological advances only in the tank industry. 0 C. technologicaladvances only in the automobile industry. 33 = O D. technological advances in both the tank I2 and automobile industries. Automobiles 1. What does increasing marginal opportunity costs mean? 0 A. Increasing the production of a good requires larger and larger decreases in the production of another good. D B. Increasing the production of a good requires smaller and smaller decreases in the production of another good. D 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. What are the implications of this idea for the shape of the production possibilities frontier? O A. The production possibilities frontier will have a negative slope. O B. The production possibilities frontier will be bowed outward. O C. The production possibilities frontier will be a straight line. C) D. The production possibilities frontier will have a positive slope. O E. The production possibilities frontier will be bowed inward