Chapter 2 Scarcity and the World of Trade-Offs

2.4 The World of Trade-Offs

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1)
In the above figure, the opportunity cost of moving from producing 75 guitars
and 25 ukuleles to producing 50 guitars and 50 ukuleles is
A)
25 ukuleles.
B)
50 guitars.
C)
100 guitars.
D)
25 guitars.

2)
In the above figure, the opportunity cost of moving from producing 50 guitars and
50 ukuleles to producing 25 guitars and 75 ukuleles is
A)
25 guitars.
B)
75 ukuleles.
C)
25 ukuleles.
D)
50 guitars.
3)
In the above figure, as more ukuleles are produced, the opportunity cost in
terms of guitars is
A)
decreasing.
B)
increasing.
C)
constant.
D)
zero.

4)
In the above figure, moving from producing 50 guitars and 50 ukuleles to
producing 25 guitars and 75 ukuleles, the opportunity cost of one
ukulele is
A)
25 guitars.
B)
75 ukuleles.
C)
25 ukuleles.
D)
1 guitar.

5)
In the above figure, the opportunity cost of moving from producing 75 guitars
and 25 ukuleles to producing 25 guitars and 75 ukuleles is
A)
25 guitars.
B)
75 ukuleles.
C)
25 ukuleles.
D)
50 guitars.

6)
Opportunity cost is illustrated on the production possibilities curve by a
A)
bowed-out shape of the curve.
B)
shift to the right of the curve.
C)
shift to the left of the curve.
D)
movement along the curve.

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7)
A farmer has 100 acres of land on which he can grow soybeans or corn. An acre
of land yields 200 bushels of soybeans or 100 bushels of corn. The above figure
refers to the farmer’s
A)
production possibilities curve.
B)
substitution options curve.
C)
demand curve.
D)
opportunity cost curve.

8)
In the above figure, how many bushels of corn are produced at point
“a”?
A)
10,000
B)
2,500
C)
1,000
D)
0