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# Economics Questions **Question 15:** Which of the following statements could explain the concave shape of the production possibilities curve in Figure 2-9? a. The publishing industry develops improved printing presses. b. Productive efficiency increases as the publishing industry moves from F t...

# Economics Questions **Question 15:** Which of the following statements could explain the concave shape of the production possibilities curve in Figure 2-9? a. The publishing industry develops improved printing presses. b. Productive efficiency increases as the publishing industry moves from F to H. c. The prices of paper and ink fall as the publishing industry moves from H to F. d. Some writers are better suited to writing novels; some are better suited to writing textbooks. **Correct Answer:** d **Question 16:** Which of the following does not help explain why specialization leads to greater production than is otherwise possible? a. An activity becomes more stimulating to the worker the more often it's repeated. b. Specialization reduces the time lost in moving from one activity to another. c. As workers repeat an activity over and over, they hone their skills and become more expert. d. Specialization allows workers to be assigned to the activities for which they have the greater natural ability. **Question 17:** Suppose that the United States has an absolute advantage over Mexico in producing both agricultural and manufactured goods. In the U.S., the opportunity cost of 1 unit of agricultural output is 2 units of manufactured goods. In Mexico, the opportunity cost of 1 unit of agricultural output is 1.5 units of manufactured goods. Total production in the U.S. and Mexico will be maximized if: a. the U.S. specializes in both types of output b. Mexico specializes in both types of output c. the U.S. specializes in agricultural goods and Mexico specializes in manufactured goods d. the U.S. specializes in manufactured goods and Mexico specializes in agricultural goods **Correct Answer:** d **Question 18:** Poor Old Johnny Ray can put on a pretty red dress in 20 minutes and sound sad on the radio in 10 minutes. Eileen can put on a pretty red dress in 30 minutes and sound sad on the radio in 20 minutes. Poor Old Johnny Ray's opportunity cost of sounding sad on the radio is: a. 1/2 of putting on a red dress b. putting on a red dress 2 times c. 3/4 of putting on a red dress d. putting on a red dress 1 1/3 times **Correct Answer:** a **Come On Eileen by Dexy's Midnight Runners** (Description of the music).