The curve above shows

1.   ?    diminishing returns
2.   ?    increasing returns
3.   ?    constant returns
4.   ?    impossible production situation

In the curve above, for every additional unit of Good A produced

1.   ?    two units of Good B are produced.
2.   ?    two units of Good B are lost.
3.   ?    there is an opportunity cost.
4.   ?    both A and B
5.   ?    both B and C

The opportunity cost of producing two additional units of Good A

1.   ?    is one unit of good B
2.   ?    is two units of good B
3.   ?    is four units of good B
4.   ?    cannot be determined from this graph

If production of Good A is increased from 0 units to one unit the opportunity cost would be

1.   ?    one unit of Good B
2.   ?    two units of Good B
3.   ?    six units of Good B
4.   ?    there would be no opportunity cost

If production of Good A is increased from two units to three units the opportunity cost would be

1.   ?    two units of Good B
2.   ?    four units of Good B
3.   ?    six units of Good B
4.   ?    twelve units of Good B
5.   ?    there would be no opportunity cost

The graph above shows

1.   ?    diminishing returns
2.   ?    increasing returns
3.   ?    constant returns
4.   ?    an impossible production situation

Point Y on the PP curve above represents

1.   ?    the point of ideal production.
2.   ?    a point that is unattainable for this situation.
3.   ?    a point where resources are not being used efficiently.
4.   ?    a point where there is perfect efficiency in the production of capital goods.
5.   ?    a desirable point, but not one with maximum profit.

Which of the following would account for a shift in production possibilities from line BB' to line CC' above?

1.   ?    An increase in the number of workers available in all industries
2.   ?    A technological advance that aides production in all industries
3.   ?    The discovery of new resources which are usable in all industries
4.   ?    all of the above are correct

Which of the following would account for a shift in production possibilities from line BB' to line AA' above?

1.   ?    An advance in technology aiding consumer products but not capital goods.
2.   ?    The discovery of a new, easy to obtain resource supply.
3.   ?    A migration of workers out of the country in question.
4.   ?    Massive unemployment.

Point Y in the graph above could represent

1.   ?    full employment
2.   ?    maximum use of resources
3.   ?    a situation that is unattainable with current resources and technology
4.   ?    both A and B