l economic question requires society to choose the technological and resource mi
ID: 1126399 • Letter: L
Question
l economic question requires society to choose the technological and resource mix used to produce goods? a. The What to Produce question b. The Why to Produce question. c The How to Produce question. d. The For Whom to Produce question. 2· The amount of a good that is given up to produce another good is: a. b. c. d. e. its dollar cost. its opportunity cost. its relative cost. its absolute cost. all of the above. 3. The production possibilities curve shows that: a. some of one good must be given up to get more of another good in an economy that is operating efficiently b. no output combination is impossible c. an economy that is operating efficiently can have more of one good without giving up some of another good scarcity can be eliminated. d. Exhibit 12 Production possibilities curves ear Capital goods In Exhibit 12, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country a. is producing the same number of capital goods in both years. b. is producing the same number of consumption goods in both years. c. has shown no growth between Year X and YearY d. has higher unemployment in Year X than in Year Y e. has higher unemployment in Year Y than in Year X. 4. IfCongress decides to increase the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will rise. This rise in prices can be attributed to a (an): a. upward movement along the supply curve for cigarettes. b. rightward shift of the supply curve for cigarettes. c. upward movement along the demand curve for cigarettes. d. leftward shift of the supply curve for cigarettes. 5. $400.000Explanation / Answer
Ans:
1) Option C
The how to produce question
The how to produce question should be considered for various techniques that can be used to produce goods and services.And these include labor intensive techniques and capital intensive techniques.
2) Option B
Its opportunity cost
Opportunity cost is the benefit of an alternative forgone by giving up an alternative to consider other alternative.
3) Option A
Some of one good must be given up to get more of another good in an economy that is operating efficiently.
The production possibility frontier (PPF) shows the combination of two goods and these are maximum possible outputs that can be obtained when all resources are fully and efficiently employed by the economy.Hence increasing the output of one good will decrease the output of other good.
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