Question 1 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link Why are production possibility curves usually bowed out from the origin A. Resources are homogeneous and can only be substituted on a one-to-one basis B. Resources are heterogeneous and are imperfect substitutes for each other C. Resources include capital and labor and cannot be substituted for each other D. Resources include land and labor and are perfect substitutes for each other Submit Answer
Question 2 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link What illustrates unemployment in a production possibility frontier A. Producing at a point on the outside of the production possibility frontier B. Producing at a point on the inside of the production possibility frontier C. Producing at a point in the exact middle of the production possibility frontier D. Producing at a point on either end of the production possibility frontier Submit Answer
Question 3 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link A student is planning their weekend activities. They would like to attend a jazz festival and watch the latest blockbuster movie. They can choose one activity since the timing of the movie and the festival coincides. Which basic economic principle is best illustrated by the student’s choice A. People respond to incentives B. Rational people think at the margin C. Trade benefits everybody D. Everyone faces tradeoffs Submit Answer
Question 4 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link What does a consumer's budget constraint identify A. Alternative production technologies B. Combinations of affordable goods C. Likelihood of wasted resources D. Opportunities to earn extra income Submit Answer
Question 5 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link What will result in a decrease in the supply of motorcycles A. An increase in the number of people aged between 18 years and 40 years riding motorcycles B. An increase in taxes imposed on the production of motorcycles C. A decrease in the price of motorcycle tires D. A technological improvement reducing the costs of producing motorcycles Submit Answer