KEY: Bloom's: Application 60. An advance in technology commonly refers to the ability to produce a. the same output with a smaller quantity of resources. b. more output with a fixed quantity of resources. c. more output with a greater quantity of resources. d. both a and b e. both b and c ANS: D PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Productivity and growth KEY: Comprehension Exhibit 2-4 61. Refer to Exhibit 2-4. The line joining points A and D is called the a. production function frontier. b. utility function. c. production possibilities frontier. d. demand curve. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Knowledge 62. Refer to Exhibit 2-4. This economy is productive a. efficient, if it operates at point B or C. b. efficient, if it operates at point A or D. c. inefficient, if it operates at A or D. d. inefficient regardless of the particular point. e. both a and b ANS: E PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Efficiency and equity KEY: Bloom's: Application 63. Refer to Exhibit 2-4. The opportunity cost of moving from point A to point B is a. 60,000 copiers. b. 40,000 copiers. c. 20,000 copiers. d. 20,000 fax machines. e. 40,000 fax machines. ANS: C PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Application 64. Refer to Exhibit 2-4. As more fax machines are produced, the opportunity cost of producing them a. increases. b. decreases. c. remains constant.
KEY: Bloom's: Application 60. An advance in technology commonly refers to the ability to produce a. the same output with a smaller quantity of resources. b. more output with a fixed quantity of resources. c. more output with a greater quantity of resources. d. both a and b e. both b and c ANS: D PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Productivity and growth KEY: Comprehension Exhibit 2-4 61. Refer to Exhibit 2-4. The line joining points A and D is called the a. production function frontier. b. utility function. c. production possibilities frontier. d. demand curve. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Knowledge 62. Refer to Exhibit 2-4. This economy is productive a. efficient, if it operates at point B or C. b. efficient, if it operates at point A or D. c. inefficient, if it operates at A or D. d. inefficient regardless of the particular point. e. both a and b ANS: E PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Efficiency and equity KEY: Bloom's: Application 63. Refer to Exhibit 2-4. The opportunity cost of moving from point A to point B is a. 60,000 copiers. b. 40,000 copiers. c. 20,000 copiers. d. 20,000 fax machines. e. 40,000 fax machines. ANS: C PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Application 64. Refer to Exhibit 2-4. As more fax machines are produced, the opportunity cost of producing them a. increases. b. decreases. c. remains constant.
Test-Bank-Economics-11th-Edition-Arnold.docx