b. PPF bowed outward. c. need to select among the points making up the PPF. d. straight-line PPF. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 56. If there is an increase in the amount of good B foregone as every additional unit of good A is produced, the PPF between goods A and B would a. be a straight line. b. be a bowed-outward curve. c. be a bowed-inward curve. d. not ANS: B PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Comprehension 57. A PPF is bowed outward as a result of a. constant opportunity costs. b. increasing opportunity c. decreasing opportunity costs. d. scarcity. e. choice. ANS: B PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 58. A PPF is a straight line as a result of a. constant opportunity costs. b. increasing opportunity costs. c. decreasing opportunity costs. d. scarcity. e. choice. ANS: A PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 59. In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an hour day, John can produce either 8 loaves of bread or 8 pounds of butter. The opportunity cost of producing 1 pound of butter is a. 1/3 hour for Andy and 1 for John. b. 1 hour for Andy and 1 hour for John. c. 3 loaves of bread for Andy and 1 loaf of bread for John. d. 1/3 loaves of bread for Andy and 1 loaf of bread for John. e. none of the above ANS: C PTS: 1 DIF: Difficulty: Challenging NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost
b. PPF bowed outward. c. need to select among the points making up the PPF. d. straight-line PPF. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 56. If there is an increase in the amount of good B foregone as every additional unit of good A is produced, the PPF between goods A and B would a. be a straight line. b. be a bowed-outward curve. c. be a bowed-inward curve. d. not ANS: B PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Comprehension 57. A PPF is bowed outward as a result of a. constant opportunity costs. b. increasing opportunity c. decreasing opportunity costs. d. scarcity. e. choice. ANS: B PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 58. A PPF is a straight line as a result of a. constant opportunity costs. b. increasing opportunity costs. c. decreasing opportunity costs. d. scarcity. e. choice. ANS: A PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Comprehension 59. In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an day, John can produce either 8 loaves of bread or 8 pounds of butter. The opportunity cost of producing 1 pound of butter is a. 1/3 hour for Andy and 1 hour for John. b. 1 hour for Andy and 1 hour for John. c. 3 loaves of bread for Andy and 1 loaf of bread for John. d. 1/3 loaves of bread for Andy and 1 loaf of bread for John. e. none of the above ANS: C PTS: 1 DIF: Difficulty: Challenging NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost
Test-Bank-Economics-11th-Edition-Arnold.docx