Inefficient use of resources is shown on the production possibilities curve a) b
ID: 1093881 • Letter: I
Question
Inefficient use of resources is shown on the production possibilities curve
a) by a point near the top of the curve b) by a point outside the curve c) by a point inside the curve d) by an inward shifting of the curve
An improvement in technology will shift the production possibilities curve
a) to the left b) to the right c) along the curve d) inward
To have more consumer goods in the future we must
a) lower current income b) produce more capital goods today c) pass new laws d) get government involved in the production process
Which of the following will cause the demand curve for beer to shift right
a) a fall in the price b) a successful advertising campaign linking beer consumption to lower cholesterol c) a fall in average incomes of beer consumers d) a decline in population
Prices play a role in a market
a) because they distribute scarce goods to those consumers who value them most highly b) because they eliminate scarcity c) because the help eliminate poverty d) because when prices are in equilibrium, product shortages or surpluses can occur
When resources of the production of a good are misallocated, it is a
a) market failure b) productive failure c) legislative failure d) government failure
Positive externalities arise when
a) a monopoly is shut down b) a monopoly is regulated c) production of a good generates benefits that spill over to third parties d) tax rates are reduced
A museum is an example of a
a) public good b) good which generates a positive externality c) merit good d) good which generates a negative externality
The economic problem with medicare financing is that
a) there is a built-in incentive to provide fewer services by doctors b) there is a built-in incentive to consume more services c) the cost of providing services is falling annually d) there is a built-in incentive to travel to canada to receive medical services
The theory of public choice suggests that
a) government agencies tend to be inefficient because they are subject to institutional arrangements in which managers do not have an incentive to be efficient b) you can lower your tax bill if you are careful not to consume too many government resources, regardless of what you neighbors do c) government agencies tend to be inefficient because the people running them out understand the concept of opportunity cost d) the goods provided by government, whether public or private goods, are not scarce.
Which of the following functions of governemnt gives property owners the incentive to use their property efficiently
a) the enforcement of antitrust legislation b) the protection of property rights c) making sure that courts are lenient on people who steal private property d) the financing of public goods
Explanation / Answer
Technological improvements will
shift the production possibilities curve outward.
Because technological improvement help increase the output of at least one product for any level of output of other goods given the same resources as compared with the pre-technological improvement situation. So the points on the new Production possibility curve would be to the right and above the earlier PPF curve