Question 1

For an economy at full employment to increase its per capita growth rate,it must

Accepted Answer

To increase per capita growth rate, an economy at full employment must allocate more resources towards the production of capital goods, which are used to increase productivity and improve efficiency in the long run. This can shift the production possibilities curve outward and lead to sustainable economic growth. Operating inside the production possibilities curve (A) means the economy is not using all available resources efficiently, while shifting the production possibilities curve inward (C) implies a decline in overall economic output. Ignoring central economic questions (D) and maintaining existing levels of consumer production (E) are not effective strategies for achieving long-term growth.

Question 2

A production possibilities curve illustrates

Accepted Answer

A production possibilities curve shows the different combinations of two goods that can be produced with limited resources, and therefore illustrates opportunity costs. Every point on the curve represents a tradeoff between producing one good versus the other, and the slope of the curve represents the opportunity cost of producing one more unit of one good in terms of the other good forgone.

Question 3

An improvement in technology or an increase in the amount of capital goods will

Accepted Answer

An improvement in technology or an increase in the amount of capital goods will shift the production possibilities curve outward, as it will increase the society's production potential. This means that they will be able to produce more of all goods or produce some goods more efficiently than before.

Question 4

The United States could expand output of both civilian and military goods during the period from 1939 through the early part of World War II because

Accepted Answer

During the 1930s, the United States was in the midst of the Great Depression, which meant that many resources, especially labor, were underutilized. When World War II began, the mobilization for war allowed these idle resources to be employed, thus expanding output without initially having to sacrifice the production of civilian goods. This indicates that the U.S. was operating inside its production possibilities curve, which represents the maximum output that an economy can produce with its available resources and technology.

Question 5

The following question are based on the following production possibilities curve:
 
-Suppose 4 million tractors wear out each year.If society chooses point A as this year's output combination,then this year's food output is 8 million tons,and at the end of the year

Accepted Answer

Since 4 million tractors wear out each year and the scenario does not mention the production of any new tractors, choosing point A (which does not specify tractor production) implies that no new tractors are added to replace the worn-out ones. Therefore, the number of tractors remains the same at the end of the year, assuming all worn-out tractors are replaced exactly, maintaining the tractor count.

Question 6

The following question are based on the following production possibilities curve:
 
-Suppose 4 million tractors wear out each year.If society wishes to push next year's production possibilities curve outward,the best point to choose of those shown is

Accepted Answer

The answer of The following question are based on the...

Question 7

The fact that initial improvements in the health of cotton textile workers were far less costly to achieve than the final stages of compliance with OSHA regulations illustrates that typical production possibilities curves are

Accepted Answer

A bowed out production possibilities curve illustrates that as more of one good is produced, more and more of the other good must be given up. In the case of complying with OSHA regulations, initial improvements may be relatively easy and inexpensive to achieve, but as a company reaches the final stages of compliance, the costs and sacrifices required to achieve further improvements become increasingly steep, leading to a curved, bowed-out production possibilities curve.

Question 8

According to Richard Gill in the Economics U$A video,the opportunity costs for preserving the Alaskan wilderness are measured by the loss of

Accepted Answer

In the Economics U$A video, Richard Gill mentioned that the opportunity costs of preserving the Alaskan wilderness include the minerals that are rendered unavailable for development. Therefore, option B is the correct answer. The other options, such as worker health benefits, wilderness areas in the lower 48 states, tax revenues to the federal government, and foreign oil because of the cutback in OPEC oil production, were not mentioned as opportunity costs in the video.

Question 9

For this economy to produce 5 million units of consumer goods and 3 million units of defense goods

Accepted Answer

The only way to produce both 5 million units of consumer goods and 3 million units of defense goods is if the production possibilities curve (PPC) is pushed outward. This would mean that the economy has increased its capacity to produce both types of goods, either through technological advancements, an increase in resources, or both. If resources were used inefficiently, unemployment would likely increase and production of both types of goods would decrease. Income inequality and shrinking resources are not directly related to the production of goods.

Question 10

All output combinations that fall on an economy's production possibilities curve

Accepted Answer

All output combinations that fall on the production possibilities curve represent the full and efficient use of an economy's resources. This means that any point on the curve represents the maximum output that can be produced with the given set of resources and technology. Therefore, the correct choice is E) represent the full and efficient use of that economy's resources.

Question 11

A production possibilities curve is least helpful when it comes to analyzing which of the basic tasks facing an economic system?

Accepted Answer

The production possibilities curve primarily helps in analyzing the production possibilities and trade-offs between two goods or services. It doesn't directly address the issue of how society's output is distributed among its members.

Question 12

If at full employment,defense goods production increases from 2 million units to 3 million units,the cost would be ________ units of consumer goods.

Accepted Answer

The opportunity cost of producing an additional unit of defense goods is the amount of consumer goods forgone. In this case, since we are at full employment, the only way to increase production of defense goods is to divert resources away from the production of consumer goods. Therefore, the cost of producing an additional 1 million units of defense goods is 1 million units of consumer goods.

Question 13

A movement from an output combination inside the production possibilities curve to a combination on the curve

Accepted Answer

Moving from a point inside the production possibilities curve to a point on the curve means utilizing resources more efficiently, allowing for an increase in the production of one good without sacrificing the output of another, without the need for additional resources or technological improvements.

Quiz 1: What is Economics