ECON 2010 Study Guide - Quiz Guide: Opportunity Cost, Budget Constraint, Marginal Cost

A production possibilities frontier will be bowed out if:

a) There is scarcity,

b) Technology is improving,

c) Production of one good involves an opportunity cost,

d) Resources are not perfectly adaptable to making each good,

e) Resources are used efficiently.

2) Which one of the following concepts is not illustrated by a production possibilities frontier? A) monetary exchange B) scarcity C) attainable and unattainable points D) opportunity cost E) the tradeoff between producing one good versus another Use the table below to answer the following questions. Table 1 Production Possibilities Possibility Kilograms of Butter Guns

1) The bowed-out (concave) shape of a production possibilities frontier A) is due to capital accumulation. B) is due to technological change. C) reflects the existence of increasing opportunity cost. D) is due to the equal usefulness of resources in all activities. E) reflects the existence of decreasing opportunity cost.