TEST BANK For Microeconomics Global Edition 9th
Edition by Jeffrey M. Perloff
A decrease in unemployment may be represented on the PPF by the movement from
A) A point from outside the PPF to on the PPF
B) A point from inside the PPF to on the PPF
C) A point from on the PPF to a different point along the PPF
D) A point on the PPF to inside the PPF - ANSWER: B) A point from inside the PPF to
on the PPF
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
A PPF curve that is bowed out from the origin has _______________ opportunity
costs
A) zero
B) increasing
C) decreasing
D) constant - ANSWER: B) increasing
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
A PPF curve that is straight has ______________ opportunity costs
A) zero
B) increasing
C) decreasing
D) constant - ANSWER: D) constant
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
A shift outwards of the PPF highlights
A) economic growth
B) an improvement in technology
C) an increase in the economy's capital stock
D) an increase in the general education level of the population
E) all of the above - ANSWER: E) all of the above
, Topic - Scarcity, choice and opportunity costs
Skill - Analytical thinking
A society can produce two goods: donuts and beer. The society's PPF is negatively
sloped and bowed outward from the origin. As this society moves up its PPF,
producing more and more units of donuts, the opportunity cost of producing beer
A) decreases
B) remains constant
C) increases
D) could decrease or increase depending on the technology - ANSWER: C) increases
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
According to the theory of comparative advantage, _____________ raise(s)
productivity by lowering opportunity costs.
A) trade and specialisation
B) investment in capital goods
C) economic growth
D) exchange and consumption - ANSWER: A) trade and specialisation
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
According to the theory of comparative advantage, specialisation and free trade will
benefit
A) only that trading party that has both an absolute advantage and a comparative
advantage in the production of all goods
B) all trading parties, even when some are absolutely more efficiently producers than
others
C) only that trading party that has an absolute advantage in the production of all
goods
D) only that trading party that has a comparative advantage in the production of all
goods - ANSWER: B) all trading parties, even when some are absolutely more
efficiently producers than others
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
An economy is operating inside their PPF. The best explanation for this is that
A) the economy has very poor technology
B) the economy's resources are being used inefficiently
C) the economy has very few resources
Edition by Jeffrey M. Perloff
A decrease in unemployment may be represented on the PPF by the movement from
A) A point from outside the PPF to on the PPF
B) A point from inside the PPF to on the PPF
C) A point from on the PPF to a different point along the PPF
D) A point on the PPF to inside the PPF - ANSWER: B) A point from inside the PPF to
on the PPF
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
A PPF curve that is bowed out from the origin has _______________ opportunity
costs
A) zero
B) increasing
C) decreasing
D) constant - ANSWER: B) increasing
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
A PPF curve that is straight has ______________ opportunity costs
A) zero
B) increasing
C) decreasing
D) constant - ANSWER: D) constant
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
A shift outwards of the PPF highlights
A) economic growth
B) an improvement in technology
C) an increase in the economy's capital stock
D) an increase in the general education level of the population
E) all of the above - ANSWER: E) all of the above
, Topic - Scarcity, choice and opportunity costs
Skill - Analytical thinking
A society can produce two goods: donuts and beer. The society's PPF is negatively
sloped and bowed outward from the origin. As this society moves up its PPF,
producing more and more units of donuts, the opportunity cost of producing beer
A) decreases
B) remains constant
C) increases
D) could decrease or increase depending on the technology - ANSWER: C) increases
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
According to the theory of comparative advantage, _____________ raise(s)
productivity by lowering opportunity costs.
A) trade and specialisation
B) investment in capital goods
C) economic growth
D) exchange and consumption - ANSWER: A) trade and specialisation
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
According to the theory of comparative advantage, specialisation and free trade will
benefit
A) only that trading party that has both an absolute advantage and a comparative
advantage in the production of all goods
B) all trading parties, even when some are absolutely more efficiently producers than
others
C) only that trading party that has an absolute advantage in the production of all
goods
D) only that trading party that has a comparative advantage in the production of all
goods - ANSWER: B) all trading parties, even when some are absolutely more
efficiently producers than others
Topic - Scarcity, choice and opportunity costs
Skill - Conceptual
An economy is operating inside their PPF. The best explanation for this is that
A) the economy has very poor technology
B) the economy's resources are being used inefficiently
C) the economy has very few resources
