If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?

Related Mcqs:

1. Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?

   A. An fall in demand B. An increase in supply C. improvements in production technology D. An increase in demand...

2. Which of the following will not shift a country’s production possibilities frontier outward ?

   A. an advance in technology B. an increase in the labor force C. an increase in the capital stock D. a reduction in unemployment...

3. Points on the production possibilities frontier are ?

   A. inefficient B. normative C. unattainable D. efficient...

4. If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?

   A. constant opportunity costs B. decreasing opportunity costs C. first increasing and then decreasing opportunity costs D. increasing opportunity costs...

5. The downward sloping marginal physical product of labor is the firm’s ?

   A. Supply of labor B. Short-run demand curve for labor C. marginal cost of labour marginal revenue product of labor...

6. If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?

   A. Trade would depend on difference in demand conditions B. Trade would depend on economies of large-scale production C. Trade would depend on the use of different currencies D. There would be no basis for gainful trade...

7. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A...

8. Any combination of products inside the production possibility frontier is ?

   A. Allocatively inefficient B. X inefficient C. Consumer inefficient D. Productively inefficient...

9. An economy may operate outside the production possibility Frontier if ?

   A. It is not utilizing its resources fully B. It is being productively efficient C. It is a mixed economy D. It is trading other economies...

10. An outward shift of the production possibility frontier may be caused by ?

    A. An increase in demand B. More government spending C. Better training of employees D. Productive inefficiency...