1. Which point represents the situation in which the economy is producing its maximum possible quantity of tubas? E 2. Inefficient production is represented by which point or points? D 3. At which points or points can the economy not currently produce? A,C 4. Efficient production is represented by which point or points? B,E 5. The economy has the ability to produce at which point or points? B Figure 2-8 (Barrels and Bathtubs) 6. What is the opportunity cost of moving from point A to point B? 20 barrels 7. If this economy puts all of its resources into the production of bathtubs it could produce? No barrels and 16 bathtubs 8. Which of the following combinations can this economy not produce? 25 barrels and 12 bath 9. If this economy moved from point C to point E? It still would not be producing efficiently 10.Production is efficient if the economy is producing? 30 barrels and 6 bathtubs Figure 2-5 (Batteries and Bagels) 11.The shift of the production possibilities frontier from A to B illustrates: Economic Growth 12.Which of the following events would explain the shift of the production possibilities frontier from A to B? The economy experienced a technological advance in the production of batteries Figure 2-4 (Toasters and Toothbrushes) 13.The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is none of the above 14.Suppose the economy is producing at point B. Which of the following statements would best explain this situation? There is widespread unemployment in the economy 15.If the economy moves from point A to point D, the opportunity cost is? 20 toasters 16.The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is? 0, since economy has resources to produce 10 additional toasters Table 2-1 17.Which of the following statements accurately describes the production possibilities for Toyland? The opportunity cost of an additional 100 dolls increase as more dolls are produced 18.What is the opp. Cost to Toyland of increasing the productions of dolls from 200 to 300? 100 fire trucks 19.If the production possibilities frontier is bowed outward, then in place of the ? we might have? 310 Figure 2.7 (Capital Goods and Consumer Goods) 20.Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B? a general technological advance 21.The shift of the production possibilities frontier from A to B can best be described as? Economic Growth