Given a production possibilities curve, a point:

Given a production possibilities curve, a point:
 a. inside the curve represents unemployment.
  b. on the curve represents full employment.
  c. outside the curve is currently unattainable.
  d. all of these.

QUESTION 2

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?
 a. A choice of more computers and less education.
  b. A choice of more education and less computers.
  c. A reduction in the labor force.
  d. An increase in the quantity of resources.

QUESTION 3

One of the assumptions underlying the production possibilities curve for any given economy is that:
 a. the state of technology changes.
  b. there is an unlimited supply of resources.
  c. there is full employment of resources when the economy is on the curve.
  d. goods can be produced outside the curve.

QUESTION 4

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located:
 a. at the top corner of the curve.
  b. near the middle of the curve.
  c. at the bottom corner of the curve.
  d. outside the curve.
  e. inside the curve.

QUESTION 5

Any point inside the production possibility curve is:
 a. efficient. b. nonfeasible.
  c. inefficient. d. optimal.