27 If the economy were producing at point F A it would not b

27.) If the economy were producing at point F A. it would not be using its resources efficiently. it would be in a recession. B. C. D. it could gain units of guns without having to sacrifice units of butter itwould specializing exclusively in butter production. 28.) If the economy were producing at point Z and moved to point D, Butter A. it could only produce more butter at the sacrifice of some gun production. B. it could only produce more guns at the sacrifice of some butter production. C. it could produce more guns and more butter at the same time. D. it would be impossible to produce more guns without the sacrifice of some butter production. An improvement in technology will cause the A. B. C. D. 29.) economy to move down the production possibility frontier. production possibility frontier to shift inward. production possibility frontier to shift outward. economy to move closer to its production possibility frontier. Japan could shift its production possibilities curve outward (to the right) if A. 30.) B. C. D. it could buy some islands in the Pacific Ocean, thus increasing its available amount of land. it could devote more of its output to military goods. it could devote more of its output to producing consumer goods. all of the choices are true. 2-7

Solution

Ans:

27) Option D

It would specializing exclusively in butter production

if the economy were producing at point F, it means it is producing only butter.Hence it would specializing exclusively in butter production.

28) Option D

it would be impossible to produce more guns without the sacrifice of some butter production.

Since the economy is producing at efficient level,it would be impossible to produce more guns without the sacrifice of some butter production.

29) Option C

production posssibility frontier to shift outward

A improvement in technology will cause the production posssibility frontier to shift outward

30) Option A

it could buy more islands in the Pacific Ocean,thus increasing its available amount of land

A increase in the resources will shift production posssibility frontier to outward.