MAE UPDATED EXAM QUESTIONS AND CORRECT ANSWERS

MAE UPDATED EXAM QUESTIONS AND
CORRECT ANSWERS
If resources were perfectly substitutable in all activities, which of the following would be true? -
CORRECT ANSWERS The production possibilities curve would be a straight line



If the production possibilities curve is concave from the origin (or bowed out) then economists -
CORRECT ANSWERS Resources are not equally suited for the production of both goods



The study of economics is primarily concerned with - CORRECT ANSWERS Allocating the
scarce resources to meet society wants



The production possibilities curve (or frontier) shows - CORRECT ANSWERS The different
combinations of two goods or services that can be produced given a fixed number of resources.



A point outside the production possibilities frontier represents - CORRECT ANSWERS An
unattainable combination