The rate of product transformation refers to

The rate of product transformation refers to
 a. how a consumer can trade one good for another while still maximizing his or her utility.
  b. how a firm can substitute one input for another and still maintain the same production level.
  c. how production of one good can be substituted for another while still using a fixed supply of inputs efficiently.
  d. how quickly a firm can produce a final good while starting with only natural resources.

QUESTION 2

The slope of the production possibility frontier shows
 a. the marginal rate of substitution between the two goods.
  b. the relative marginal costs of the two goods.
  c. the efficient combination of outputs possible using fixed amounts of input.
  d. the relative marginal productivities of the two goods.

QUESTION 3

Suppose two goods (X and Y ) are being produced efficiently and that the production of X is always more labor intensive than the production of Y. Production depends only on two factors (capital and labor); these may be smoothly substituted for each other. The total quantities of these inputs are fixed. An increase in the production of X and a decrease in the production of Y will
 a. increase the capital-labor ratio in each firm.
  b. decrease the capital-labor ratio in each firm.
  c. leave the capital-labor ratio for each firm unchanged.
  d. increase the capital-labor ratio in Y production and decrease the capital-labor ratio in X production.

QUESTION 4

Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing
 a. the firms use the inputs in different proportions.
  b. the firms exhibit diminishing returns to scale.
  c. the firms exhibit increasing returns to scale.
  d. production can never be efficient if there are unemployed inputs.

QUESTION 5

Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. Suppose that a nationwide quota (of 20) is enforced so that more can be used in a war effort. What is the consumer surplus?
 a. 200
  b. 400
  c. 600
  d. 800