91. The production possibilities frontier shows: A) that unattainable combinations of goods occur inside the curve. B) decreasing opportunity costs along the curve. C) only two possible combinations of goods an economy can produce at full employment. D) all possible combinations of two goods an economy can produce, given its available factors of production and technology.
92. A production possibilities frontier that is a straight line is the result of: A) constant opportunity costs. B) increasing opportunity costs. C) scarcity. D) underemployment of resources. 93. A lawyer can argue a case in court for one hour and make $300. She could alternatively use that hour of time to type a legal brief in her office. What is the opportunity cost of her typing the legal brief? A) nothing, since she would never type a legal brief B) nothing, since she would always hire an administrative assistant to type for her C) $300, since that is the amount she could have made by arguing a case in court D) There is not enough information in this problem to be able to answer the question.
94. Abdul decided to sleep in rather than attend his 8:30 A.M. economics class. Economists would find this choice: A) rational, if Abdul has not missed any other classes. B) irrational, because economic analysis suggests you should always attend the classes for which you have paid. C) irrational, because oversleeping is not in Abdul's self-interest. D) rational, if Abdul values sleep more highly than the benefit he would expect to receive from attending the class.
95. Which statement is NOT an illustration of opportunity cost? A) If a person takes a job as long-distance truck driver, he won't have as much time to spend with his family. B) If a person studies for her English class, she won't have as much time to write creative poetry. C) The more a person works at her job, the more leisure time she has. D) If I party every night of the week, my grades at school will drop.
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