Question

Because resources are not equally well suited to producing all goods,

Select one:

a. as more of a good is produced, the inputs used to produce that good will increase in price.

b. the opportunity costs of producing a good will increase as more of that good is produced.

c. as more of a good is produced, the quality of that good declines, and therefore the costs of production increase.

d. the opportunity costs of producing a good will decrease as more of that good is produced.

Consider two countries, Estonia and Ukraine. Estonia devotes a larger portion of its production to capital. All other things equal which of the following statements is most likely true?

Select one:

a. Ukraine is producing inside its production possibility frontier, whereas Estonia is producing at a point on its production possibility frontier.

b. Estonia is a poorer country than Ukraine.

c. Estonia's production possibility frontier will shift up and out farther and faster than Ukraine's.

d. Estonia will move up its production possibility curve faster than Ukraine.

Economic growth will most likely occur when

Select one:

a. technology remains unchanged but unemployment increases.

b. a society decides to produce less using existing resources.

c. the society begins to produce the combination of goods society wants most.

d. a society acquires new resources.

For an economy to produce at a point ________ current production possibility frontier, the economy must increase its resource base.

Select one:

a. beyond its

b. which is optimally efficient on its

c. inside its

d. higher up on its