2. the different combinations of goods that a producer can produce given its resources and the state of technology. The fundamental problem of economics is: Everyone in the economy is happy. 15. Getting the maximum goods and services possible from the available resources. When an economy is efficient, it is producing the maximum gains from trade possible given the resources available. it is possible to produce more of one good without producing less of another good. When an economy is operating efficiently,the production of one more unit of a good will result in the production of less of another good because: A) technology can only improve the production of one good. C) Experiencing decreasing opportunity costs. When an economy is operating efficiently: It is producing the maximum output with the available resources and technology. A) That a shortage of a particular good will cause the price to fall. The allocation of resources by market forces. With respect to factors of production, which of the following statements is not true? SCARCITY: THE CORE PROBLEM Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. The production possibilities curve illustrates. 3. the boundary between attainable and unattainable combinations of … A) A "free lunch" is possible but only for a limited number of people. The economy is producing on the production-possibilities curve. Which of the following events would allow the production possibilities curve to shift outward? C) Poor countries must make choices but rich countries with abundant resources do not have to make Economic efficiency means the economy is doing the best job possible of satisfying the unlimited needs and wants with limited resources.., that is of addressing the problem of scarcity. The doctrine of laissez faire is based on the belief that. The National Welfare … (a) The economy is producing on the production possibilities curve. Which of the following is not one of the three core economic issues that must be resolved? 1. Answer: A Type: Basic Understanding Page: 2 Production efficiency is an economic term describing a level in which an economy or entity can no longer produce additional amounts of a good … to the his resne could not produce any more of one good without sacrificing production of another good and without improving the production technology. D) full employment is achieved. assuming that the economy is working efficiently and it has many choices for production, choice A: it can produce 2 from X and 15 from Y and choice B: it can produce 3 from X and 10 from Y; then the opportunity cost for increasing one unit from X when moving from A to B will be All of the above. It can produce more of one good without giving up some of another good. D) All of the above. In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods. A) Best to use society's scarce resources. Answer: C Type: Definition Page: 4 b. it is not possible to produce more of any good at any cost. to the his resne Opportunity costs are experienced whenever choices are made. This is attractive because the resources are being used properly and not wasted. All of the above. could not produce any more of one good without sacrificing production of another good and without improving the production technology. In economics, what does scarcity mean? The study of microeconomic theory focuses on the. When a firm or economy is operating efficiently, it is operating - Subject Economics - 00212249 ... possible to increase production of all goods simultaneously. A firm is technically efficient when it combines the optimal combination of labour and capital to produce a good. Says that as production of a good increases, the opportunity cost of producing that good also increases. If an economy is producing efficiently, then it is impossible for that economy to produce more of one good without producing less of the other. Goods or services that are forgone in order to obtain something else. Microeconomics is concerned with issues such as. Page 1. D) All of the above. Given that resources are scarce: The production possibilities curve illustrates which two of the following essential principles? Chapter 1: Economics: The Core Issues A city's decision to limit smoking in public areas is an example of. Economics is the study of how: Clipping is a handy way to collect important slides you want to go back to later. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. B) Getting the most goods and services from the available resources. The economy cannot produce more of one good without simultaneously reducing the output of another good. C) That society's desires exceed the want-satisfying capability of the resources available to satisfy those A point on a nation's production possibilities curve represents. You can change your ad preferences anytime. Getting the maximum goods and services possible from the available resources. Looks like you’ve clipped this slide to already. Society's desires exceed resources available. c. it is possible to produce more of one good without producing less of another good. A consequence of the economic problem of scarcity is that. A shift outward of the production possibilities curve. C) Experiencing decreasing opportunity costs. Some land is better suited for apples, while other land is best for oranges. The points on a production possibilities curve show, In terms of the production possibilities curve, inefficiency is represented by, If an economy is producing inside the production possibilities curve, then. An economy is said to be producing goods efficiently if it will not be able to produce more of a commodity using the given resources. (d) Everyone in the economy is happy. The role of the entrepreneur in an economy is to. Which of the following is true when an economy is producing efficiently? c. C - is true in case if economy is producing inside PPC (but it might cost more inputs and/or loss of efficiency). See our User Agreement and Privacy Policy. When an economy is producing efficiently, it is A. experiencing decreasing opportunity costs B. producing equal amounts of all goods C. producing a combination of goods and services outside the production possibilities curve D. getting the most goods and services from the available resources Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Economics can be defined as the study of: Chapter 1: Economics: The Core Issues If an economy experiences increasing opportunity costs with respect to two goods, then the production possibilities curve between the two goods will be, If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then. C) How to get government to operate efficiently. d. it is not possible to produce more of any good at any cost. It is possible to produce more of both goods. Only those resources that are privately owned are counted as factors of production. cannot produce more of a good, without more inputs. 1- If an economyis producing efficiently then Its possible to produce more of one good without producing less of another is correct option. The use of market prices and sales to signal desired output. Which of the following can be used to correct market failure? An economy's production of two goods is efficient if: a. all members of society consume equal portions of the goods. D. There are not enough resources available to produce more output. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. Holding all else constant, which of the following is correct? The "guns versus butter" dilemma that all nations confront is that. Productive efficiency is closely related to the concept of technical efficiency. i.e. The limitations that exist because of scarce resources. d. It is not possible to produce more of one good at any cost. ;John Maynard Keynes. Production efficiency is a term used to describe the state or level at which a business is producing the greatest number of units while utilizing the least amount of resources possible. Shift outward of the production possibilities curve. QUESTION 58 Which of the following is true when an economy is producing efficiently? Which of the following is not a macroeconomic statement? B) The scarcity of resources relative to human wants. If country 1 is on its production possibilities frontier, then country 2 must be on its PPF, too. Which of the following is true when an economy is producing efficiently? The market mechanism has failed to achieve social efficiency. When an economy is producing efficiently it is: A) Producing a combination of goods and services beyond the production-possibilities curve. D) That the market mechanism has failed. Which of the following is not a basic decision that all nations must confront? D) How to create employment for everyone. b. the goods are produced using only some of society's available resources. An economy operates more efficiently by producing that mix. The scarcity of resources relative to human wants. Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). Multiple Choice Questions When a firm or economy is operating efficiently, it is operating - Subject Economics - 00212249. 5. It infers that there is no resource that should be remaining idle or unused. In other words, productive efficiency occurs when a good or a service is produced at the lowest possible cost. b. it is possible to produce more of both goods without increasing the quantities of inputs that are being used. Which of the following is not a factor of production? A - is true if economy is producing on highest possible potential (economy will be on PPC - not inside of it). Land, labor, capital, and entrepreneurship. B) Getting the most goods and services from the available resources. If an economy is producing a combination of goods that places it inside the production possibilities curve then it has: idle factors of production or inefficient use of resources. 125. D) What scarce resources are used to produce goods and services. Which of the following is an assumption under which the production possibilities curve is drawn? B) That a production-possibilities curve cannot accurately represent the tradeoff between two goods. i.Production efficiency occurs only when resources are used to produce the combination of goods that has the greatest value. B) the PPF shifts inward as more of only one good is produced. The idea is to achieve a balance between use and production without decreasing the quality of … According to the law of increasing opportunity costs. An economy is being efficient if it is impossible to produce more of one good without producing less of another. If North Korea is currently producing at efficiency, and it proceeds to increase the size of its military, then, as long as nothing else changes, its. What is given up in order to get something else. Maximum combinations of goods and services an economy can produce given its available resources and technology. All of the points in the frontier such as A and B are said to be productively efficient because they are fully utilizing the economy’s resources that they have. A) The law of increasing opportunity costs. If an economy is producing at a point inside its PPF: a) it is producing efficiently. If an economy is producing efficiently, then ) there is no way to produce more of one good without producing less of another good. 1 points Saved Saved QUESTION 59 A line that slopes downward from left to … In other words, we can say that it will need to decrease the production of one good if it wants to produce more units of the other. Production efficiency is a term used to describe the state or level at which a business is producing the greatest number of units while utilizing the least amount of resources possible. b) it is producing beyond its production possibilities. A) For whom resources are allocated to increase efficiency. B) Society spends the income of individuals. 125. Macroeconomics focuses on the performance of. b. possible to increase production of one good at the expense of another. Economic efficiency occurs when the cost of producing a given output is as low as possible.Technological efficiency is an engineering matter. Why? B) How society spends the income of individuals. An economy can only produce on its production possibilities frontier 2. 2. choices. Capital, as economists use the term, refers to. The activity that is best alternative use of your time. When an economy is productively efficient, it can only produce an additional unit of one product by producing less of the other product; resource have to be shifted from one product to the other. Predict economic behavior, Develop economic policies, Explain economic behavior. 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