Question

Which of the following production levels represents an inefficient use of the economy's resources?

Question 1 options:

A) 600,000 bushels of food and 0 skeins of cloth.

B) 500,000 bushels of food and 30,000 skeins of cloth.

C) 300,000 bushels of food and 30,000 skeins of cloth.

D) 200,000 bushels of food and 20,000 skeins of cloth.

Question 2

(1 point)

Suppose the economy is producing 500,000 bushels of food and 20,000 skeins of cloth. What is the opportunity cost of producing an additional 10,000 skeins of cloth?

Question 2 options:

A) 70,000 bushels of food.

B) 100,000 bushels of food.

C) 200,000 bushels of food.

D) 500,000 bushels of food.

Question 3

(1 point)

Suppose the economy is producing 500,000 bushels of food and 20,000 skeins of cloth. To increase cloth production to 30,000 skeins without reducing food production, the economy must

Question 3 options:

A) acquire new resources or better technology.

B) eliminate the current inefficient use of resources.

C) fire some workers and replace them with machines.

D) lower taxes and reduce government spending.

Question 4

(1 point)

Which fundamental economic question is most closely related to the issues of income distribution and poverty?

Question 4 options:

A) The What to Produce question.

B) The Why to Produce question.

C) The How to Produce question.

D) The For Whom to Produce question

Question 5

(1 point)

A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $30 to $40 per acre. According to marginal analysis, the farmer should add additional fertilizer if it costs less than

Question 5 options:

A) $10 per pound.

B) $20 per pound.

C) $30 per pound.

D) $40 per pound.

Question 6

(1 point)

If society fully employs its resources to their capacity, then it will be operating at a point

Question 6 options:

A) beneath its production possibilities curve.

B) at a corner of its production possibilities curve.

C) somewhere along its production possibilities curve.

D) outside of its production possibilities curve.

Question 7

(1 point)

The law of increasing opportunity costs causes the production possibilities curve to

Question 7 options:

A) be a straight line.

B) slope upwards.

C) have a bowed-out shape.

D) shift inward.

Question 8

(1 point)

Additions to available resources will cause the production possibilities curve to

Question 8 options:

A) shift outward.

B) disappear.

C) become vertical.

D) contract.

Question 9

(1 point)

Which of the following will not shift a production possibilities curve outward?

Question 9 options:

A) An increase in the supply of resources.

B) A technological improvement.

C) A decrease in the unemployment rate.

D) A better trained labor force.

Question 10

(1 point)

Which of the following is most likely to stimulate a nation's economic growth?

Question 10 options:

A) Investing in new capital goods.

B) Raising taxes on goods imported from abroad.

C) Expanding the money supply.

D) Imposing new, lower mandatory retirement age.

Answer 1

1) The question has given us two different production possibilities one is 500,000 bushels of wheat and 30,000 skeins of clothes and the other are 500,000 bushels of food and 30,000 skeins of cloths. Taking the above data into account if we can produce 500,000 bushels of food with 30,000 skeins of clothes then producing any less will be inefficient.

The correct answer to this question is "C" 300,000 bushels of food and only 20,000 skeins of clothes.

2) As per the data are given above the correct answer is "C", 200,000 bushels of food should be sacrificed to produce an extra 10,000 skeins of clothes.

3) "A" acquire the new resources and employ better technology, by doing so we can increase the production of clothes without sacrificing the amount of food.

4) "D" the for whom to produce question is related to poor. It decides that the goods which we are producing in the economy, who will benefit from that the rich or the poor.