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Feedback: According to the text, efficiency is increased when the economy moves from a point inside the production possibility curve to a point on this curve. This is the case because resources are allocated more effectively as a result of this movement. [Question] 39. Refer to the graph below.

As you move from point A to point B: A. production efficiency is increased because we have more of good X. B. production efficiency is decreased because we have less of good Y. C. production efficiency is decreased because we are no longer on the production possibility curve. D. the change in efficiency is unclear. Ans: C AACSB: Reflective Thinking Bloom’s: Understand Difficulty: 02 Medium Learning Objective: 02-02 Topic: Comparative Advantage Feedback: According to the text, efficiency is achieved only when the economy is on the production possibility curve. Points inside this frontier are inefficient because more output can always be obtained by reallocating resources. [Question] 40. Refer to the graph below.

Given the production possibility curve, which point is unattainable? Š 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

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Test Bank for Economics 10th Colander  

Test Bank Economics 10th Edition Colander 2017 (Test Bank Download) (9781259193156) (1259193152). Instant access. All chapter are included....

Test Bank for Economics 10th Colander  

Test Bank Economics 10th Edition Colander 2017 (Test Bank Download) (9781259193156) (1259193152). Instant access. All chapter are included....