Exhibit 2-1
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33. Refer to Exhibit 2-1. The PPF illustrates
a.
constant opportunity costs between guns and butter.
b.
that guns are more important than butter.
c.
increasing opportunity costs between guns and butter.
d.
the opportunity cost of one unit of guns is four units of butter.
e.
none of the above
34. Refer to Exhibit 2-1. The movement from point A to point B is a movement from
a.
a productive efficient point to a productive inefficient point.
b.
a point with more guns and less butter to a point with more butter and even more guns.
c.
a productive efficient point to another productive efficient point.
d.
a productive inefficient point to a productive efficient point.
35. Refer to Exhibit 2-1. A movement from point B to point D
a.
could only happen through economic growth.
b.
is necessarily a movement from a productive efficient point to a productive inefficient point.
c.
is a movement from a productive efficient point to another productive efficient point.
d.
is necessarily a movement from a productive inefficient point to another productive inefficient point.
36. Refer to Exhibit 2-1. If the economy is at point C, it follows that
a.
more guns and more butter could be produced with available resources than are currently being produced.
b.
only more guns could be produced with available resources than are currently being produced.
c.
only more butter can be produced with available resources than are currently being produced.
d.
C is an unattainable point.
37. Refer to Exhibit 2-1. The opportunity cost of moving from point B to A is
a.
10,000 units of butter.
b.
20,000 units of butter.
c.
50,000 units of guns.
d.
the maximum amount of butter that can be produced with available resources.
38. Refer to Exhibit 2-1. Scarcity exists
a.
at point C but not at point A.
b.
neither at point C nor at point A.
c.
at both point C and at point A.
d.
at point A but not at point C.
39. Refer to Exhibit 2-1. The opportunity cost of moving from point A to B is
a.
10,000 units of butter.
b.
20,000 units of butter.
c.
20,000 units of guns.
d.
10,000 units of guns.
NOT: New
40. According to the text, farming today in the U.S. is __________ productive compared to a century ago, resulting in there being __________ farmers today than at the turn of the previous century.
a.
about as; fewer
b.
about as; more
c.
much more; fewer
d.
much more; more
