Exam 1: Limits, Alternatives, and Choices

-Refer to the above diagram. This production possibilities curve is:

-Refer to the above diagram. The combination of computers and bicycles shown by point G is:

Which of the following is real capital?

The construction of a production possibilities curve assumes:

When an economy is operating with maximum efficiency, the production of more of commodity A will mean the production of less of commodity B because:

-Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. The movement from curve (a) to curve (b) suggests:

Which situation would most likely shift the production possibilities curve for a nation in an outward direction?

In drawing a budget line it is assumed that:

The budget line shift from cd to ab in the below figure is consistent with:

Macroeconomics explains the behaviour of individual households and business firms; microeconomics is concerned with the behaviour of aggregates or the economy as a whole.

-The slope of a straight line can be determined by:

-Refer to the table below. In moving from possibility A to F, the cost of a unit of steel in terms of a unit of wheat: (The following economy produces two products.) Production Possibilities

Unemployment and/or productive inefficiencies:

-Refer to the production possibilities curves. The movement from curve (a) to curve (c) indicates an improvement in civilian goods technology but not in war goods technology.

If we say that two variables are inversely related, this means that:

Positive statements are expressions of value judgments.

Which of the following would be most likely to shift the production possibilities curve to the right?

If the equation y = -10 + 2.5x was plotted

-Refer to the above diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:

Refer to the graph. The movement from line A to line A' represents a change in: