.2.objective.

Question 1 If an economy is productively efficient: a) Everyone is wealthy b) Resources are unemployed c) More of one product can only be produced if less of another product is produced d) The distribution of income is equal Question 2 Economic growth can be shown by: a) An inward shift of the production possibility frontier b) A movement along the production possibility frontier c) An outward shift of the production possibility frontier d) A decision by the government to produce inside the production possibility frontier Question 3 As resources are shifted from one industry to another this can be shown by: a) An inward shift of the production possibility frontier b) A movement along the production possibility frontier c) An outward shift of the production possibility frontier d) The pivoting of the production possibility frontier Question 4 In a free market the combination of products produced will be determined by: a) Market forces of supply and demand b) The government c) The law d) The public sector Question 5 If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs, the opportunity cost of the 5 th B is: a) 7As b) 10As c) 3As d) 1A Question 6 An economy may operate outside the Production Possibility Frontier if: a) It is not utilizing its resources fully b) It is being productively efficient c) It is a mixed economy d) It is trading with other economies Question 7 The resources in the economy do not include: a) Demand b) Land c) Labour d) Capital Question 8 The resources in an economy are: a) Constantly increasing b) Fixed at any moment c) Constantly decreasing d) Able to be transferred easily betweenindustries Question 9 Any combination of products inside the production possibility frontier is: a) Allocatively inefficient b) X inefficient c) Consumer inefficient d) Productively inefficient Question 10 An outward shift of the production possibility frontier may be caused by: a) An increase in demand b) More government spending c) Better training of employees d) Productive inefficiency