ECOs_ (1).P_1_Q&A_.pdf

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Chapter 2 The Economic Problem
Test Bank

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The production possibilities frontier
1) $\_\_\_\_$
A) refers to the technology used in such goods as computers and military aircraft.
B) marks the boundary between attainable combinations of goods and services and unattainable combinations.
C) once applied to U.S. technology but now refers to Japanese technology.
D) is also called the supply curve.
2) The production possibilities frontier is the boundary between
2)
$\_\_\_\_$
A) those combinations of goods and services that can be produced and those that can be consumed.
B) those combinations of goods and services that can be produced and those that cannot.
C) those resources that are limited and those that are unlimited.
D) those wants that are limited and those that are unlimited.
3) The production possibilities frontier is the boundary between those combination of goods and
3)
$\_\_\_\_$ services that can be
A) produced and those that can be consumed.
B) consumed domestically and those that can be consumed by foreigners.
C) consumed and those that cannot be produced.
D) produced and those that cannot be produced.
4) The production possibilities frontier is
4) $\_\_\_\_$
A) downward sloping and reflects tradeoffs in choices.
B) downward sloping and reflects unlimited choices.
C) upward sloping and reflects tradeoffs in choices.
D) upward sloping and reflects unlimited choices.
5) The production possibilities frontier
5) $\_\_\_\_$
A) depicts the boundary between those combinations of goods and services that can be produced and those that cannot given resources and the current state of technology.
B) shows how many goods and services are consumed by each person in a country.
C) is a graph with price on the vertical axis and income on the horizontal axis.
D) is a model that assumes there is no scarcity and no opportunity cost.
6) The production possibilities frontier illustrates
6) $\_\_\_\_$
A) all goods that can be produced by an economy.
B) all goods and services that are desired but cannot be produced due to scarce resources.
C) the combination of goods and services that can be produced efficiently.
D) all possible production of capital goods.
7) The production possibilities frontier represents
7) $\_\_\_\_$
A) the maximum levels of production that can be attained.
B) the maximum amount of resources available at any given time.
C) combinations of goods …