23. Points outside the Production Possibility Frontier (PPF)
A) Are efficient and attainable
B) Are attainable but inefficient
C) Can be made attainable through efficient utilization of existing re-
D) Are unattainable
E) None of the above
24. Which one is correct when perfectly elastic demand curve shifts to-
perfectly inelastic supply curve?
A) Price increases and quantity remain constant
B) Both price and quantity increases
C) Price remain same and quantity increase
D) Price increase and quantity decrease
E) None of the above
25. Macroeconomic topics include
A) The impact of government regulation of automobile markets.
B) Nationwide employment.
C) Studying what factors influence the price and quantity of automobile
D) Studying the determination of wages and production costs in the soft
E) A and B
26. Factors of production include all of the following EXCEPT
A) Machines made in past years
B) Money
C) Any wheat field that is not irrigated
D) Entrepreneurship
E), Renewable resources
7. Suppose that the price elasticity of demand for cough syrup has been
quantity demanded increased by 10 percent, price must have changed by
A) 5 percent lower.
B) 5 percent higher.
C) 10 percent lower.
D) 10 percent higher
E) cannot be determined from the given information
The discovery of a large new reserve of crude oil will shift the
eading to
) Supply, higher
) Demand, higher
equilibrium price.
C) Supply, lower
D) Demand, lower