Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held fixed?
a. Unemployment and capital goods production.
b. Number of resources and consumption goods production.
c. Composition of the economy's output and number of resources.
d. Capital and consumption goods production.
e. Technology and number of resources.
QUESTION 2The law of increasing opportunity costs causes the production possibilities curve to:
a. be a straight line. b. slope upwards.
c. have a bowed-out shape. d. shift inward.
QUESTION 3If society leaves some of its resources unemployed, then it will be operating at a point:
a. beneath its production possibilities curve.
b. at a corner of its production possibilities curve.
c. anywhere along its production possibilities curve.
d. outside of its production possibilities curve.
QUESTION 4As production of a good increases, opportunity costs rise because:
a. there will be more inefficiency. b. people always prefer having more goods.
c. of inflationary pressures. d. workers are not equally suited to all tasks.
QUESTION 5All points on the production possibilities curve are:
a. unattainable. b. fair.
c. efficient. d. optimal.
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