Graph, Production Possibilities Frontiers (PPFs), Principles of Macroeconomics Midterm Exam
The key terms in this Principles of Macroeconomics course include Graph, PPF, Production, Variable, Production Possibilities Frontiers (PPFs), Capital Goods, Change, Ceteris Paribus, Specialization and Trade, Principles of Macroeconomics, Midterm Exam
The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called
positive analysis.
faulty assumptions.
ceteris paribus.
exogenous factors.
normative analysis.
Refer to the following table to answer the following questions.
| New York Pizzas | Philly Cheesesteaks | |
| Jay-Z | 40 | 120 |
| Solange | 50 | 125 |
Suppose that Solange and Jay-Z could each make either New York–style pizza or Philly cheesesteaks. Given an eight-hour workday, which of the following would permit them to consume outside their respective production possibilities frontiers (PPFs)?
specialization and trade
a decrease in technology
an “Empire State” of mind
a decrease in resources
efficient use of all their productive resources
Greater investment in capital goods today leads to
less opportunity cost.
greater growth in the production possibilities frontier (PPF) in the future.
the end of scarcity.
greater consumption today.
Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the following questions.
A.
B.
C.
D.
E.
Suppose the plow is invented and agricultural productivity greatly increases. Which of the following graphs best depicts how this would affect the PPF?
Graph E
Graph A
Graph D
Graph C
Graph B
The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called
positive analysis.
faulty assumptions.
ceteris paribus.
exogenous factors.
normative analysis.
Refer to the following table to answer the following questions.
| New York Pizzas | Philly Cheesesteaks | |
| Jay-Z | 40 | 120 |
| Solange | 50 | 125 |
| | | |
Suppose that Solange and Jay-Z could each make either New York–style pizza or Philly cheesesteaks. Given an eight-hour workday, which of the following would permit them to consume outside their respective production possibilities frontiers (PPFs)?
specialization and trade
a decrease in technology
an “Empire State” of mind
a decrease in resources
efficient use of all their productive resources
Greater investment in capital goods today leads to
scarcity.
less opportunity cost.
greater growth in the production possibilities frontier (PPF) in the future.
the end of scarcity.
greater consumption today.
Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the following questions.
A.
B.
C.
D.
E.
Suppose the plow is invented and agricultural productivity greatly increases. Which of the following graphs best depicts how this would affect the PPF?
Graph E
Graph A
Graph D
Graph C
Graph B