ECN101 Chapter 3 Key Terms Exam with Questions and Answers

ECN101 Chapter 3 Key Terms Exam with Questions and Answers The production possibilities frontier is the boundary between the combinations of goods and services that _____, given the available factors of production and the state of technology. A. we want to produce but cannot consume. B. can be produced and the prices paid for those. C. can be produced and the combinations that cannot be produced D. we want to produce and what we want to consume ANSWER C. can be produced and the combinations that cannot be produced. Production efficiency is a situation in which the economy is getting all that it can from its resources and _____ produce more of one good or service without producing _____ of something else. A. can; less B. cannot; equal C. cannot; more D. cannot; less ANSWER D. cannot; less Which of the following is an example of absolute advantage? A. Charlie enjoys skiing while Ryan enjoys hiking. B. Amy is smart and performs well in exams. C. Tom does his math homework in 2 hours while Harry takes only 30 minutes to do the same task. D. Nick has an advantage over others in the industry because he knows many software