36) Point C on the production possibilities frontier in the above diagram illustrates
A) a point with maximum and efficient production of Goods A and Goods B.
B) an underutilization of resources.
C) all goods and services that are desired but cannot be produced due to scarce resources.
D) a combination of goods and services that cannot be produced efficiently.
37) In the above figure, which point represents an unattainable production combination of
the two goods?
A) point N B) point L C) point C D) point D
38) In the above figure, which point represents an attainable but inefficient production point?
A) point N B) point C C) point D D) point L
33) If production of two goods is currently at levels such that we are inside the
production possibilities frontier
A) in order to produce more of one good, we must produce less of the other.
B) it is not possible to produce more of both goods.
C) we are in the "unattainable" region.
D) production is inefficient.
34) Using the production possibilities frontier model, unemployment is described as
producing at a point
A) on the exact middle of the PPF curve.
B) inside the PPF curve.
C) outside the PPF curve.
D) on either end of the PPF curve.
23) Refer to the production possibilities frontier in the figure above. Which point
indicates that resources are NOT fully utilized or are misallocated?
A) point a
B) point b
C) point c
D) point e
24) Refer to the production possibilities frontier in the figure above. Which point is
unattainable?
A) point a
B) point b
C) point c
D) point e
23) C
24) D
33) D
34) B
35) A
36) A
37) B
38) C
47) In the figure above, which movement reflects an increase in demand?
A) from point a to point e
B) from point a to point c
C) from point a to point b
D) from point a to point d
48) In the figure above, which movement reflects a decrease in demand?
A) from point a to point d
B) from point a to point e
C) from point a to point c
D) from point a to point b
49) In the figure above, which movement reflects a decrease in quantity demanded but NOT a
decrease in demand?
A) from point a to point c
B) from point a to point e
C) from point a to point d
D) from point a to point b
50) In the figure above, which movement reflects how consumers would react to an increase in
the price of a non-fruit snack?
A) from point a to point b
B) from point a to point d
C) from point a to point c
D) from point a to point e
51) In the figure above, which movement reflects an increase in the price of a substitute for
fruit snacks?
A) from point a to point d
B) from point a to point e
C) from point a to point b D) from point a to point c
52) In the figure above, which movement reflects an increase in the price of a complement for
fruit snacks?
A) from point a to point b B) from point a to point d
C) from point a to point e
D) from point a to point c
47) D
48) C
49) B
50) B
51) A
52) D
