This document contains all the questions and answers that you will need to complete assignment 2 for semester 2 2022. For further assistance please leave a reply and I'll get back to you.
ESC1501: ASSIGNMENT 2 SEMESTER 2 2022
A situation in which some resources are NOT fully utilized is represented in a production
possibilities curve diagram by
the midpoint of the production possibilities curve.
a point inside the production possibilities curve.
any point on either the horisontal or the vertical axis.
a point outside the production possibilities curve.
In March 2020, a factory used new technology to produce its output. Then in July 2020, a
fire destroys half the factory. The new technology shifted the factory's PPC _____ and the
fire shifted it _______.
inward; inward.
inward; outward
outward; outward
outward; inward
Opportunity cost is represented on the production possibilities curve by
attainable and unattainable points.
the amount of good Y forgone when more of good X is produced.
technological progress.
efficient and inefficient point .
,Moving from one point on the production possibilities curve to another
involves a tradeoff and incurs an opportunity cost
involves no tradeoff but it does incur an opportunity cost
involves an opportunity cost but no trade-off
involves a trade-off but does not incur an opportunity cost
chnical efficiency is achieved
when it producing one more unit of one good cannot occur without producing less
of some other good.
when producing inside the production possibilities curve.
when all goods and services desired by consumers can be produced in the economy.
when the ability is gained to produce goods and services that are desired beyond the
PPC boundary.
Economic growth
has no opportunity cost.
makes it more difficult for a nation to produce on its PPC.
creates unemployment.
shifts the PPC outward.
, When resources are assigned to inappropriate tasks, that is, tasks for which they are not
the best match, the result will be producing at a point
where the slope of the PPC is positive.
inside the PPC.
outside the PPC.
where the slope of the PPC is zero.
A production possibilities curve does NOT illustrate
opportunity cost.
attainable and unattainable points.
the exchange of one good or service for another.
the limits on production imposed by our limited resources and technology.
The production possibilities curve shifts as
tastes and preferences change.
technology changes.
the unemployment rate changes.
the money supply grows or shrinks.
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