8/21/23, 11:41 AM Assessment 2: Attempt review

UNISA  2023  ECS1501-23-S2  Assessments  Assessment 2

QUIZ

Started on Monday, 21 August 2023, 11:08 AM

State Finished
Completed on Monday, 21 August 2023, 11:41 AM
Time taken 33 mins 2 secs
Marks 18.00/20.00
Grade 90.00 out of 100.00

Question 1
Complete

Not graded

I confirm

that this assessment will be my own individual work;

that I will not communicate with anyone else in any way during the completion
of this assessment;

that I will not cheat in any way in completing and submitting this assessment.

I confirm.

I do not confirm.

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Question 2
Complete

Mark 0.00 out of 1.00

The PPC shifts if

the unemployment rate falls.

the resources available to the nation change.

people decide they want more of one good and less of another.

the prices of the goods and services produced rise.

The Production Possibilities Curve (PPC) shifts if there are changes in the
factors that determine an economy's production capabilities. A shift in the PPC
indicates a change in an economy's potential to produce goods and services,
usually due to changes in resources, technology, or skills levels. For example,

If an economy experiences technological progress, it can produce more output

with the same amount of resources or if an economy gains access to
additional resources, such as new sources of raw materials or an increase in
labour force, its production potential expands. A better-skilled and educated
workforce can enhance an economy's productivity and production capabilities.
This can cause the PPC to shift outward.
Note, a decrease in the unemployment rate leads to a move towards the PPC,
not a shift thereof.

Question 3
Complete

Mark 1.00 out of 1.00

A point inside a production possibilities curve

implies that too much capital and not enough labour are being used.

is unattainable.

could indicate that some resources are unemployed.

is more efficient than points on the production possibilities curve.

When a point is inside the PPC, it signifies that the nation is not fully utilizing its
resources, resulting in production levels below what is technically feasible. This
could be due to factors such as underemployment of resources, inefficiencies in
production processes, or other constraints. As a result, the country is not
achieving its maximum possible output of both goods.

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Question 4
Complete

Mark 1.00 out of 1.00

If production of two goods is currently at levels such that we are inside the
production possibilities curve

we are in the "unattainable" region.

production is inefficient.

in order to produce more of one good, we must produce less of the other.

it is not possible to produce more of both goods.

The PPC illustrates the various combinations of two goods that a nation can
produce using its available resources and technology. Points on the PPC
represent efficient utilization of resources, whereas points inside the PPC
indicate that resources are not being used to their full potential.

Question 5

Complete

Mark 1.00 out of 1.00

An economy that uses new technology

moves along its PPC and incurs an opportunity cost.

has it’s PPC shift outward.

does not incur an opportunity cost because everyone can use new
technology.

has its PPC shift inward because more unemployment is created.

New technology can make production processes more efficient. This might
mean that the same amount of resources can now produce more output. As a
result, the PPC can shift outward, showing that the economy can now produce
more goods than before.

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Question 6
Complete

Mark 1.00 out of 1.00

Technical efficiency is achieved

when producing inside the production possibilities curve.

when all goods and services desired by consumers can be produced in the
economy.

when the ability is gained to produce goods and services that are desired
beyond the PPC boundary.

when it producing one more unit of one good cannot occur without
producing less of some other good.

Technical efficiency is achieved when an economy produces the maximum

possible amount of output from a given set of inputs or resources. In other
words, it occurs when an economy is operating on its Production Possibilities
Curve (PPC). This implies that producing one more unit of one good cannot
occur without producing less of some other good.

Question 7
Complete

Mark 1.00 out of 1.00

The principle of increasing opportunity cost leads to

an inward shift of the production possibilities curve (PPC).

a production possibilities curve (PPC) that is bowed outward from the

origin.

a production possibilities curve (PPC) that is bowed inward from the origin.

an outward shift of the production possibilities curve (PPC).

The principle of increasing opportunity cost leads to a bowed-out or concave

shape of the Production Possibilities Curve (PPC). This principle reflects the
concept that as an economy shifts resources from the production of one good
to another, the opportunity cost of producing the second good increases.

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Question 8
Complete

Mark 1.00 out of 1.00

An increase in the nation's capital stock will

move the nation from producing within the PPC to producing at a point
closer to the PPC.

cause a movement along the PPC downward and rightward.

shift the PPC outward.

cause a movement along the PPC upward and leftward.

When the nation's capital stock increases, it causes the PPC to shift outward,
away from the origin. This shift signifies that the economy's potential to
produce both goods has increased. It indicates that the nation can now
produce more of both goods.

Question 9
Complete

Mark 1.00 out of 1.00

A production possibilities curve does NOT illustrate

the exchange of one good or service for another.

opportunity cost.

attainable and unattainable points.

the limits on production imposed by our limited resources and technology.

While a PPC is a valuable tool for understanding trade-offs, opportunity costs,

and resource allocation it does not illustrate the exchange of one good or
service for another.

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8/21/23, 11:41 AM Assessment 2: Attempt review

Question 10
Complete

Mark 0.00 out of 1.00

Resource use is efficient when

we produce the goods with the lowest opportunity cost.

we produce the goods with the highest opportunity cost.

we produce the goods we value most highly.

we cannot produce more goods and services.

Resource use is efficient when an economy is producing at a point on its

Production Possibilities Curve (PPC). This means that the economy is fully
utilizing its available resources and technology to achieve the maximum
possible output of goods and services given its constraints.

Question 11
Complete

Mark 1.00 out of 1.00

The production possibilities curve

depicts the boundary between those combinations of goods and services

that can be produced and those that cannot given resources and the
current state of technology.

shows how many goods and services are consumed by each person in a
country.

is a model that assumes there is no scarcity and no opportunity cost.

is a graph with price on the vertical axis and income on the horisontal axis.

The Production Possibilities Curve (PPC), also known as the Production

Possibilities Frontier (PPF), is a graphical representation that illustrates the
maximum amount of two goods an economy can produce given its limited
resources and technology. The PPC demonstrates the concept of opportunity
cost, scarcity, and trade-offs in an economy.

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Question 12
Complete

Mark 1.00 out of 1.00

When economic growth occurs, the

production possibilities curve shifts outward but no longer limits the

amount that can be produced.

production possibilities curve shifts outward.

the production possibilities curve becomes steeper.

the economy moves along its production possibilities curve.

Economic growth has a significant and positive effect on the Production

Possibility Curve (PPC). Economic growth refers to the sustained increase in an
economy's real output over time, often measured by increases in Gross
Domestic Product (GDP). As an economy grows, it generally experiences an
outward shift of the PPC, reflecting an increase in its production capacity and
potential.

Question 13
Complete

Mark 1.00 out of 1.00

The production possibilities curve represents

combinations of goods and services that do not fully use available

resources.

the maximum levels of production that can be attained.

the maximum amount of resources available at any given time.

the maximum rate of growth of output possible for an economy.

The Production Possibilities Curve (PPC) is a graphical representation that

illustrates the maximum amount of two goods an economy can produce given
its limited resources and technology.

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Question 14
Complete

Mark 1.00 out of 1.00

When the production possibilities curve is bowed outwards, the opportunity cost
of producing more of one good

remains constant.

decreases in terms of the amount foregone of the other good.

cannot be determined.

increases in terms of the amount foregone of the other good.

As an economy moves along the curve, it has to give up increasing amounts of

one good to produce additional units of the other good. This illustrates the idea
that resources are not perfectly adaptable between the two goods, and there's a
trade-off between their production.

Question 15

Complete

Mark 1.00 out of 1.00

Opportunity cost is represented on the production possibilities curve by

the amount of good Y forgone when more of good X is produced.

attainable and unattainable points.

efficient and inefficient point .

technological progress.

Opportunity cost is represented on the Production Possibilities Curve (PPC) by

the slope of the curve. The slope of the PPC indicates the rate at which one
good must be given up (Good Y) to produce an additional unit of the other good
(Good X). In other words, the slope shows the opportunity cost of producing
more of one good in terms of the other.

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Question 16
Complete

Mark 1.00 out of 1.00

A PPC bows outward because

consumers prefer about equal amounts of the different goods.

resources are used inefficiently.

not all resources are equally productive in all activities.

entrepreneurial talent is more abundant than human capital.

A Production Possibility Curve (PPC) bows outward because not all resources
are equally productive in all activities.

The fact that not all resources are equally productive in all activities leads to
diminishing marginal returns and increasing opportunity costs that cause the
PPC to bow outward. This relationship between resource allocation and
production is a fundamental concept in economics and is visually represented
by the shape of the PPC.

Question 17
Complete

Mark 1.00 out of 1.00

Economic growth is the result of all of the following EXCEPT

investment in human capital.

capital accumulation.

opportunity cost.

technological change.

Economic growth can be a result of improved investment in human capital,

technological change or capital accumulation, but not opportunity cost.
Opportunity cost refers to the value of the next best alternative that you give up
when you choose one option over another. It's the cost of forgoing the benefits
of the option not chosen.

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Question 18
Complete

Mark 1.00 out of 1.00

Economic growth

creates unemployment.

makes it more difficult for a nation to produce on its PPC.

has no opportunity cost.

shifts the PPC outward.

Economic growth leads to an expansion of an economy's production

possibilities. This results in an outward shift of the entire PPC, indicating that
the economy can produce more of both goods.

Question 19
Complete

Mark 1.00 out of 1.00

Scarcity is represented on the production possibilities curve by

technological progress.

the fact there are attainable and unattainable points.

the fact that there are only two goods in the diagram.

the amount of the good on the horisontal axis forgone.

Scarcity is represented on the Production Possibilities Curve (PPC) by the

limited availability of resources and the trade-offs that must be made between
producing different goods.

Operating on the PPC or inside it reflects the constraints of scarcity. Points

inside the PPC represent the underutilization of resources due to scarcity, while
points on the PPC indicate the efficient allocation of available resources. The
points outside the PPC are unattainable given the current resources and
technology, representing goods and services that the economy cannot produce
due to scarcity.

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Question 20
Complete

Mark 1.00 out of 1.00

The production possibilities curve shifts as

tastes and preferences change.

the money supply grows or shrinks.

the unemployment rate changes.

technology changes.

The Production Possibilities Curve (PPC) shifts if there are changes in the
factors that determine an economy's production capabilities. A shift in the PPC
indicates a change in an economy's potential to produce goods and services,
usually due to changes in resources, technology, or skills levels. For example,

If an economy experiences technological progress, it can produce more output

with the same amount of resources or if an economy gains access to additional
resources, such as new sources of raw materials or an increase in labour force,
its production potential expands. A better-skilled and educated workforce can
enhance an economy's productivity and production capabilities. This can cause
the PPC to shift outward.

Question 21
Complete

Mark 1.00 out of 1.00

Capital accumulation

shifts the production possibilities curve outward.

has no impact on the production possibilities curve.

shifts the production possibilities curve inward.

makes the production possibilities curve steeper.

Capital accumulation positively impacts the PPC by expanding the economy's

production possibilities resulting in an outward shift of the curve. This shift
represents an economy's ability to produce more goods and services, ultimately
contributing to its growth and prosperity.

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