R-1 F02036

Refer to the above diagram. Other things equal, this economy will achieve the most rapid rate of growth if:
A.the ratio of capital to consumer goods is minimized.
B.it chooses point C.
C.it chooses point B.
D.it chooses point A.

R-2 F02050

Refer to the above diagram. This production possibilities curve is constructed such that:
A.resources are presumed to be perfectly shiftable as between bread and tractors.
B.the opportunity cost of bread diminishes as more bread is produced.
C.the opportunity cost of tractors diminishes as more bread is produced.
D.the opportunity cost of both bread and tractors increases as more of each is produced.

R-3 F02055

Refer to the above production possibilities curve. At the onset of World War II the United States had large amounts of idle human and property resources. Its economic adjustment from peacetime to wartime can best be described by the movement from point:
A.c to point b.
B.b to point c.
C.a to point b.
D.c to point d.

R-4 REF 2-82

Refer to the above diagram. As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve:

R-5 F02098

Refer to the above diagram for athletic shoes. The optimal output of shoes:
A.is Q1.
B.is Q2.
C.is Q3.
D.is greater than Q3.

R-6 F02107

Refer to the above diagram. The concave shape of each production possibilities curve indicates that:
A.resources are perfectly substitutable.
B.wants are virtually unlimited.
C.prices are constant.
D.resources are not equally suited for alternative uses.


R-7 F02136

Refer to the above circular flow model of the economy. In the diagram flow (1) represents:
A.wage, rent, interest, and profit income.
B.land, labor, capital, and entrepreneurial ability.
C.goods and services.
D.consumer expenditures.

R-8 F02144

Refer to the above diagram. Arrows (1) and (2) represent:
A.goods and resources respectively.
B.money incomes and output respectively.
C.output and money incomes respectively.
D.resources and goods respectively.


R-9 F02158

Refer to the above production possibilities curves. Given production possibilities curve (a), the combination of civilian and war goods indicated by point X is unattainable to this economy.

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