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Department
Administrative Studies
Course
ADMS 2400
Professor
Paul Favaro
Semester
Fall

Description
Economics Canada in the Global Environment 7e ParkinChapter 2 The Economic Problem21 Production Possibilities and Opportunity Cost1 The production possibilities frontier A is the boundary between attainable and unattainable levels of production B is the boundary between what we want to consume and what we want to produce C shows how production increases as prices riseD shows prices at which production is possible and impossible E illustrates why there need not be any scarcity in the world AnswerADiff 1TopicProduction Possibilities and Opportunity Cost2 Which one of the following concepts is not illustrated by a production possibilities frontier A scarcity B monetary exchange C opportunity costD attainable and unattainable points E the tradeoff between producing one good versus another AnswerBDiff 2TopicProduction Possibilities and Opportunity Cost3 A point inside a production possibilities frontier A indicates some unused or misallocated resources B is unattainable C is preferred to a point on the production possibilities frontierD indicates a point of production efficiency E illustrates the idea of opportunity cost AnswerADiff 1TopicProduction Possibilities and Opportunity Cost4 Which one of the following concepts is illustrated by a production possibilities frontierA profitB consumptionC investmentD monetary exchangeE the tradeoff between producing one good versus anotherAnswerEDiff 1TopicProduction Possibilities and Opportunity Cost1 2010 Pearson Education Canada5 If Sam is producing at a point inside his production possibilities frontier then he A can increase production of both goods with zero opportunity cost B is fully using all his resources and allocating his resources to their best use C must be doing the best he can with limited resources D is unaffected by costs and technology E has a high opportunity cost of moving from this point AnswerADiff 2TopicProduction Possibilities and Opportunity Cost6 If Sam is producing at a point on his production possibilities frontier then he A cannot produce any more of either good B is unaffected by costs and technology C can produce more of both goods D is not subject to scarcity E can increase the production of one good only by decreasing the production of the other AnswerEDiff 2TopicProduction Possibilities and Opportunity Cost2 2010 Pearson Education CanadaUse the figure below to answer the following questionsFigure 2117 Refer to the production possibilities frontier in Figure 211Which one of the following is true about point A A It is unattainable B While no more of good Y can be produced more of good X can be produced C It is preferred to point B D Resources are either unused or misallocated or both E It is attainable only if the amount of capital goods is increased AnswerDDiff 1TopicProduction Possibilities and Opportunity Cost8 Complete the following sentence In Figure 211 A movement from A to B would require a technological advance B point B is a point of production efficiency C some resources must be unused at point C D the concept of decreasing opportunity cost is illustrated E movement from C to B would require a technological improvement AnswerBDiff 2TopicProduction Possibilities and Opportunity Cost3 2010 Pearson Education Canada
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