Professional Documents
Culture Documents
Test Bank For Microeconomics Canada in The Global Environment Canadian 8th Edition Parkin Bade 032180838X 9780321808387
Test Bank For Microeconomics Canada in The Global Environment Canadian 8th Edition Parkin Bade 032180838X 9780321808387
2) Which one of the following concepts is not illustrated by a production possibilities frontier?
A) scarcity
B) monetary exchange
C) opportunity cost
D) attainable and unattainable points
E) the tradeoff between producing one good versus another
Answer: B
Diff: 2 Type: MC
Topic: Production Possibilities and Opportunity Cost
Figure 2.1.1
7) Refer to the production possibilities frontier in Figure 2.1.1. Which one of the following is
true about point A?
A) It is unattainable.
B) While no more of good Y can be produced, more of good X can be produced.
C) It is preferred to point B.
D) Resources are either unused or misallocated or both.
E) It is attainable only if the amount of capital goods is
increased. Answer: D
Diff: 1 Type: MC
Topic: Production Possibilities and Opportunity Cost