Points on the production possibilities frontier are ?

Related Mcqs:

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

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

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. 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

4. 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

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

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

6. 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

7. 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

8. The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?

   A. Ricardo Malthus theorem
   B. Heckscher Ohlin theorem
   C. Lucas-Laffer theorem
   D. Friedman Samuelson theorem

9. Which index combines measures of calorie availability (in relation to requirement) the growth of per capita daily energy supply food production food staples self-sufficiency, and variability of food production and consumption ?

   A. food sufficiency index
   B. food security index
   C. food self-intake index
   D. food growth index

10. One percentage decrease in unemployment is associated with two percentage points of additional growth in real gdp is called?

    A. Okun’s Law
    B. classical theory
    C. Consumer price index
    D. none of the above

    Submitted by: Maneesh Kumar