Question 1

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. The...

Question 2

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Accepted Answer

The answer of Figure 2-6 
-Refer to Figure 2-6. The...

Question 3

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Accepted Answer

Moving from point I to point H means producing 120 more blankets and 120 fewer pillows. Therefore, the opportunity cost of this movement is the 120 pillows that could have been produced with the same amount of resources used to produce the additional 120 blankets. Therefore, the best choice is B, as it correctly identifies the opportunity cost as 120 blankets.

Question 4

Figure 2-6 
-Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Accepted Answer

The answer of Figure 2-6 
-Refer to Figure 2-6. If...

Question 5

Figure 2-7 
-Refer to Figure 2-7. If this economy devotes all of its resources to the production of engines, then it will produce

Accepted Answer

According to the production possibilities frontier in Figure 2-7, if this economy devotes all of its resources to the production of engines, it can produce 40 engines and 0 TVs. This is because the production possibilities frontier shows the maximum possible combinations of the two goods that can be produced given the economy's resources and technology. The point on the frontier represents the combination of the two goods where all resources are fully utilized, so by choosing the point where all resources are devoted to engine production, the economy can produce the maximum number of engines possible.

Question 6

Figure 2-6 
-Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

Accepted Answer

The answer of Figure 2-6 
-Refer to Figure 2-6. If...

Question 7

Figure 2-7 
-Refer to Figure 2-7. This economy cannot produce at which point(s)?

Accepted Answer

Point Q is outside the production possibilities frontier, indicating that the economy does not have the resources or technology to produce at that level. All other points (L, M, N, O, and P) are within the production possibilities frontier and therefore represent attainable levels of production.

Question 8

Figure 2-6 
-Refer to Figure 2-6. A movement from point H to point K could be caused by

Accepted Answer

The answer of Figure 2-6 
-Refer to Figure 2-6. A...

Question 9

Figure 2-5 
-Refer to Figure 2-5. It is not possible for this economy to produce at point

Accepted Answer

Point C falls outside of the production possibilities curve, indicating that it is not possible for the economy to produce at that level of output. Points A, B, and D are all feasible production points within the curve.

Question 10

Figure 2-5 
-Refer to Figure 2-5. Inefficient production is represented by which point(s)?

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. Inefficient...

Question 11

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. The...

Question 12

Figure 2-5 
-Refer to Figure 2-5. It is possible for this economy to produce

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. It...

Question 13

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point F is

Accepted Answer

Moving from point I to point F requires production of an extra 120 pillows, which would result in a loss of 360 blankets (the decrease in the horizontal axis from point I to point F). Therefore, the opportunity cost of moving from point I to point F is 360 blankets.

Question 14

Figure 2-7 
-Refer to Figure 2-7. Efficient production is represented by which point(s)?

Accepted Answer

Point L and M represent efficient production because they are on the production possibilities curve (PPC), indicating that all resources are being used in the most efficient way possible to produce the combination of goods and services represented by those points. Points N, O, P, and Q are all inefficient because they are inside the PPC, indicating that not all resources are being fully utilized to produce the combination of goods and services represented by those points.

Question 15

Figure 2-6 
-Refer to Figure 2-6. If this economy moves from point F to point G, then which of the following statements is correct?

Accepted Answer

Moving from point F to point G represents an increase in output of both goods, indicating an increase in productive capacity and economic growth. Point F is not necessarily inefficient, as it is still on the production possibility frontier, so option A is incorrect. There is no information in the graph to suggest an increase in employment, so option C is also incorrect.

Question 16

Figure 2-5 
-Refer to Figure 2-5. Efficient production is represented by which point(s)?

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. Efficient...

Question 17

Figure 2-7 
-Refer to Figure 2-7. This economy has the ability to produce at which point(s)?

Accepted Answer

This economy can produce at any point along the production possibilities curve (PPC), which includes points L, M, N, O, and P. However, it cannot produce at point Q since it is outside of the PPC, indicating that it is currently unattainable given the resources available.

Question 18

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. The...

Question 19

Figure 2-5 
-Refer to Figure 2-5. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

Accepted Answer

The answer of Figure 2-5 
-Refer to Figure 2-5. Suppose...

Question 20

Figure 2-5 
-Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

Accepted Answer

The production possibilities frontier (PPF) in this figure shows the maximum possible combinations of washers and dryers that can be produced with the given resources and technology. The economy is currently operating at a point inside the PPF, which means it is not using all of its resources. However, even if it were to fully utilize its resources, it still cannot produce 70 washers and 70 dryers because that level of output is beyond the current capacity of the economy with the given resources and technology. Therefore, the correct answer is C.

Quiz 2: Thinking Like an Economist

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Figure 2-7 -Refer to Figure 2-7. If this economy devotes all of its resources to the production of engines, then it will produce

Figure 2-6 -Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

Figure 2-7 -Refer to Figure 2-7. This economy cannot produce at which point(s) ?

Figure 2-6 -Refer to Figure 2-6. A movement from point H to point K could be caused by

Figure 2-5 -Refer to Figure 2-5. It is not possible for this economy to produce at point

Figure 2-5 -Refer to Figure 2-5. Inefficient production is represented by which point(s) ?

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Figure 2-5 -Refer to Figure 2-5. It is possible for this economy to produce

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point F is

Figure 2-7 -Refer to Figure 2-7. Efficient production is represented by which point(s) ?

Figure 2-6 -Refer to Figure 2-6. If this economy moves from point F to point G, then which of the following statements is correct?

Figure 2-5 -Refer to Figure 2-5. Efficient production is represented by which point(s) ?

Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which point(s) ?

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Figure 2-5 -Refer to Figure 2-5. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

Figure 2-5 -Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because