Chapter 2 Scarcity and the World of Trade-Offs

Question

33) Efficiency can correctly be defined as

A) producing outside the production possibilities boundary.

B) minimizing opportunity cost.

C) producing the maximum output with given technology and resources.

D) providing for the immediate needs of the greatest proportion of the population.


34) When an economy is operating efficiently, which is true?

A) All resources are fully employed.

B) It would be possible to increase the output of 1 good without decreasing the output of the other.

C) Resources are not fully employed or current technology is not being fully utilized.

D) This economy is operating to the right of its production possibilities curve (PPC).

35) Typically, the greater the specialization of resources,

A) the less production that takes place.

B) the greater the bow of the production possibilities curve.

C) the poorer the country becomes.

D) the greater the unemployment in the country.

36) The production possibilities curve bows outward because

A) opportunity costs are decreasing as the production of a good increases.

B) opportunity costs are increasing as the production of a good increases.

C) opportunity costs are fixed as the production of a good increases.

D) resources are of uniform quality.


Chapter 2 Scarcity and the World of Trade-Offs

Buy Answer