Ppf

7 Questions | By Amoore131 | Updated: Mar 19, 2022 | Attempts: 164

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1.

Suppose that when ABC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that _________.
- A.
  
  The opportunity cost of a new drama series is 1/3 of a new reality show
- B.
  
  The opportunity cost of a 1 new reality show is 1/3 of a new drama series
- C.
  
  CBC has a comparative advantage in producing new drama series
- D.
  
  CBC has a comparative advantage in producing new reality shows
Correct Answer
B. The opportunity cost of a 1 new reality show is 1/3 of a new drama series
2.

A country offers free university tuition to high school students with a “B” average. In 2008, the country raised the requirement so that fewer students qualified for the scholarship. At the same time, the country increased spending on health care. Suppose that university education is on the y-axis and health care is on the x-axis of a PPF. The country’s change in spending would be shown as _________
- A.
  
  A movement up along the PPF
- B.
  
  A movement down along the PPF
- C.
  
  A shift out of the PPF
- D.
  
  A shift in of the PPF.
Correct Answer
B. A movement down along the PPF
3.

Marginal benefit is the ______
- A.
  
  Opportunity cost of producing one more unit of a good and increases as production increases opportunity cost of producing one more unit of a good and increases as production increases
- B.
  
  Opportunity cost of producing one more unit of a good and decreases as production increases
- C.
  
  Benefit from consuming one more unit of a good and increases as consumption increases
- D.
  
  Benefit from consuming one more unit of a good and decreases as consumption increases
Correct Answer
D. Benefit from consuming one more unit of a good and decreases as consumption increases
4.

In the figure, if 2 million computers are produced per year, then the ________ must be produced to achieve the allocatively efficient use of resources.
- A.
  
  A marginal cost of a computer exceeds the marginal benefit of a computer, so more computers
- B.
  
  Marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers
- C.
  
  Marginal benefit of a computer exceeds the marginal cost of a computer, so more computers
- D.
  
  Marginal benefit of a computer exceeds the marginal cost of a computer, so fewer computers
Correct Answer
C. Marginal benefit of a computer exceeds the marginal cost of a computer, so more computers
5.

The opportunity cost of economic growth is _____.
- A.
  
  Future consumption that a nation gets if it gives up some present consumption
- B.
  
  Future consumption that a nation gives up to consume more today
- C.
  
  Present consumption that a nation gives up to accumulate capital
- D.
  
  Investment that a nation gives up to increase its economic growth
Correct Answer
C. Present consumption that a nation gives up to accumulate capital
6.

Suppose a scientific breakthrough made free solar power available in unlimited quantities in the United States. The effect of this invention would shift the _______.
- A.
  
  U.S. production possibilities frontier outward
- B.
  
  United States out beyond its production possibilities frontier.
- C.
  
  United States inside its production possibilities frontier.
- D.
  
  U.S. production possibilities frontier inward
Correct Answer
A. U.S. production possibilities frontier outward
7.

In the United States, Texas ranks number one in the amount of installed megawatts for wind power generation and Utah ranks number one in the number of ski runs. These facts point out that _______.
- A.
  
  Texas definitely has an absolute advantage in wind power generation
- B.
  
  Texas has a comparative advantage in wind power generation
- C.
  
  Utah should produce more wind energy
- D.
  
  Utah can produce wind energy at a lower opportunity cost than can Texas
Correct Answer
B. Texas has a comparative advantage in wind power generation

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Current Version
Mar 19, 2022

Quiz Edited by
ProProfs Editorial Team
Sep 26, 2012

Quiz Created by
Amoore131

Suppose that when ABC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that _________.

Marginal benefit is the ______

In the figure, if 2 million computers are produced per year, then the ________ must be produced to achieve the allocatively efficient use of resources.

The opportunity cost of economic growth is _____.

Suppose a scientific breakthrough made free solar power available in unlimited quantities in the United States. The effect of this invention would shift the _______.

In the United States, Texas ranks number one in the amount of installed megawatts for wind power generation and Utah ranks number one in the number of ski runs. These facts point out that _______.