SOLVED

31) A straight-line production possibilities curve has A) an increasing opportunity cost between the two goods. B) a decreasing opportunity cost between the two goods. C) a constant opportunity cost between the two goods. D) no opportunity cost between the two goods. 32) Which of the following would result in a movement along the production possibilities curve? A) A fall in the unemployment rate B) Growth in the capital stock C) Population growth D) A change in the outputs of two goods that a society chooses to produce 33) A movement along the production possibilities curve would imply that A) the labor force has grown. B) productivity has increased. C) society has chosen a different set of outputs. D) productivity has declined because workers are demanding more leisure. 34) Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE? A) An additional computer can be produced only if fewer televisions are produced. B) The trade-off between computers and televisions is not constant. C) Society cannot have more of both goods at the same time. D) There are no opportunity costs involved in choosing one point on the curve over all other points. 35) If the production possibilities curve is a downward sloping straight line, then A) resources are highly specialized, making it difficult to use them for alternative uses. B) technological change has increased. C) production is efficient only when producing at the mid-point. D) all resources must be perfectly adaptable for alternative uses. 36) A graphical representation which shows the trade-off that occurs when more of one output is obtained at the sacrifice of another is called A) a Laffer Curve. B) a production possibilities curve. C) a bell curve. D) a supply curve. 37) Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another 100 bushels of corn today is A) 100 bushels of corn next year. B) 25 bushels of corn next year. C) 10 bushels of corn next year. D) 2.5 bushels of corn next year. 38