Economics > QUESTIONS & ANSWERS > ECON 201 ASSIGNMENT 3 QUESTIONS AND ANSWERS (All)

ECON 201 ASSIGNMENT 3 QUESTIONS AND ANSWERS

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QUESTION 1 Generally, opportunity costs increase and the production possibilities frontier bows outward. Why? QUESTION 2 Production efficiency is achieved when QUESTION 3 An expansion of the pro ... duction possibilities frontier is QUESTION 4 Marginal cost is the opportunity cost of a good or service that exceeds its benefit. a.of a good or service divided by the number of b.units produced. c.that your activity imposes on someone else. d.that arises from producing one more unit of a good or service. QUESTION 5 Which of the following is true? allocative efficiency occurs at a specific point (i.e. a specific mix of production) on the production possibilities curve (frontier) that is valued above all alternatives. productive or technical efficiency occurs anywhere on the production possibilities curve opportunity cost can be measured by the slope of the PPC curve (frontier) all of the above none of the above 1 points QUESTION 6 The principle of decreasing marginal benefit means that as the quantity of a good consumed increases, its total benefit decreases. increases, its marginal benefit decreases. decreases, its marginal benefit decreases. None of the above answers is correct. [Show More]

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