{"id":188429,"date":"2025-02-07T03:29:56","date_gmt":"2025-02-07T03:29:56","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=188429"},"modified":"2025-02-07T03:29:59","modified_gmt":"2025-02-07T03:29:59","slug":"the-production-possibility-curve-can-be-used-to-show-all-of-the-following-except","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/07\/the-production-possibility-curve-can-be-used-to-show-all-of-the-following-except\/","title":{"rendered":"The production possibility curve can be used to show all of the following except"},"content":{"rendered":"\n

41) The production possibility curve can be used to show all of the following except:<\/p>\n\n\n\n

A) price<\/p>\n\n\n\n

B) scarcity<\/p>\n\n\n\n

C) choice<\/p>\n\n\n\n

D) opportunity cost<\/p>\n\n\n\n

42) The case of a free lunch exists when:<\/p>\n\n\n\n

A) people are on welfare and fail to seek employment<\/p>\n\n\n\n

B) the economy is operating on its production possibility curve<\/p>\n\n\n\n

C) the economy obtains additional resources to enable it to achieve a combination that was previously unavailable<\/p>\n\n\n\n

D) additional output can be produced without sacrificing the production of any other good or service<\/p>\n\n\n\n

43) A production possibility diagram can be used to show:<\/p>\n\n\n\n

A) opportunity cost<\/p>\n\n\n\n

B) economic growth<\/p>\n\n\n\n

C) resource utilization<\/p>\n\n\n\n

D) all of the above<\/p>\n\n\n\n

44) Which of the following would result in an outward shift of the economy\u2019s production possibility curve?<\/p>\n\n\n\n

A) Workers who were previously unemployed are hired<\/p>\n\n\n\n

B) New immigrants enter the country but are currently unemployed<\/p>\n\n\n\n

C) The economy increases its food production by shifting resources away from the production of machines<\/p>\n\n\n\n

D) The economy puts idle resources to work<\/p>\n\n\n\n

45) Which of the following will not shift an economy\u2019s production possibility curve?<\/p>\n\n\n\n

A) The employment of previously idle resources<\/p>\n\n\n\n

B) The hiring of workers from other countries<\/p>\n\n\n\n

C) The discovery of new resources<\/p>\n\n\n\n

D) An improvement in technology<\/p>\n\n\n\n

46) Which of the following will affect the position of the p-p curve?<\/p>\n\n\n\n

A) New immigrants enter the country but cannot find jobs<\/p>\n\n\n\n

B) Households increase their purchases of consumer goods and services<\/p>\n\n\n\n

C) All firms hire workers who were previously unemployed<\/p>\n\n\n\n

D) An increase in demand causes firms to increase their production levels<\/p>\n\n\n\n

47) Suppose Canada produces relatively more capital goods and relatively fewer consumer goods, while Australia produces relatively more consumer goods and relatively fewer capital goods. Other things being equal:<\/p>\n\n\n\n

A) Canada’s production possibility curve will shift out more quickly than Australia\u2019s<\/p>\n\n\n\n

B) Australia\u2019s production possibility curve will shift out more quickly that Canada\u2019s<\/p>\n\n\n\n

C) it is impossible to tell which country’s production possibility curve will shift out more quickly<\/p>\n\n\n\n

D) neither country’s production possibility curve will shift outward<\/p>\n\n\n\n

48) Assume a concave production possibilities curve with a consumer good on the y-axis and a capital good on the x-axis. An improvement in technology used in the capital goods industry will cause the pp-curve to:<\/p>\n\n\n\n

A) shift out parallel to itself<\/p>\n\n\n\n

B) shift in parallel to itself<\/p>\n\n\n\n

C) pivot out around the y-intercept<\/p>\n\n\n\n

D) pivot out around the x-intercept<\/p>\n\n\n\n

49) If existing land is brought into cultivation, the economy’s production possibility curve will:<\/p>\n\n\n\n

A) shift outward<\/p>\n\n\n\n

B) shift towards the origin<\/p>\n\n\n\n

C) not be affected<\/p>\n\n\n\n

D) become concave instead of linear<\/p>\n\n\n\n

50) On a production possibilities curve with consumer goods on the y-axis and capital goods on the x-axis, the decision to produce more capital goods than consumer goods will:<\/p>\n\n\n\n

A) shift the pp-curve around the y-axis<\/p>\n\n\n\n

B) shift the pp-curve around the x-axis<\/p>\n\n\n\n

C) shift the pp-curve out parallel to itself<\/p>\n\n\n\n

D) cause a movement along the original pp-curve, in the direction of the capital goods<\/p>\n\n\n\n

The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n

Here are the correct answers with explanations for each question:<\/p>\n\n\n\n

41) The production possibility curve can be used to show all of the following except:<\/strong><\/p>\n\n\n\n