Practice Questions for the Examination Part One – The Production Possibilities Frontier Sample Multiple Choice questions and answers. Table 1.1 1) What is the opportunity cost of one pound of vegetables? Refer to Figure 1.1. A) pound of meat B) 1.2 pounds of meat C) 1 pounds of meat D) 12 pounds of meat Answer: A 2) What is the opportunity cost of one pound of meat? Refer to Figure 1.1. A) pound of vegetables B) 1 pounds of vegetables C) 1.6 pounds of vegetables D) 16 pounds of vegetables Answer: B 3) Suppose Mendonca is currently producing 60 pounds of vegetables Refer to Figure 1.1. per period. How much meat is it also producing, assuming that resources are fully utilized? A) 45 pounds of meat B) 75 pounds of meat C) 80 pounds of meat D) 100 pounds of meat Answer: B Table 1.2 4) What is the opportunity cost of producing 1 pound of cashews in Refer to Figure 1.2. Indonesia? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton Answer: C 5) Which country has a comparative advantage in the production of Refer to Figure 1.2.
Practice Questions for the Examination Part One – The Production Possibilities Frontier Sample Multiple Choice questions and answers. Table 1.1 1) Refer to Figure 1.1. What is the opportunity cost of one pound of vegetables? A) pound of meat B) 1.2 pounds of meat C) 1 pounds of meat D) 12 pounds of meat Answer: A 2) Refer to Figure 1.1. What is the opportunity cost of one pound of meat? A) pound of vegetables B) 1 pounds of vegetables C) 1.6 pounds of vegetables D) 16 pounds of vegetables Answer: B 3) Refer to Figure 1.1. Suppose Mendonca is currently producing 60 pounds of vegetables per period. How much meat is it also producing, assuming that resources are fully utilized? A) 45 pounds of meat B) 75 pounds of meat C) 80 pounds of meat D) 100 pounds of meat Answer: B Table 1.2 4) Refer to Figure 1.2. What is the opportunity cost of producing 1 pound of cashews in Indonesia? A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 2 2/3 bolts of cotton D) 320 bolts of cotton Answer: C 5) Refer to Figure 1.2. Which country has a comparative advantage in the production of
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