Use the following diagram to answer the next question.
The most likely cause of a shift of a production possibilities frontier of an economy AB to CD is
A. technological progress.
B. allocative efficiency.
C. a decrease in the price level.
D. full employment of resources.
Answer: A
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Excess supply in an unregulated market will cause the price of a product to fall
Indicate whether the statement is true or false
Refer to the Article Summary. Colorado taxes marijuana with a 12.9% sales tax on buyers and a 15% wholesale excise tax on producers, or a total tax of 27.9%
Suppose the actual burden of the tax falls 80 percent on consumers and 20 percent on producers. In this case, consumers will actually bear the tax burden of about ________ percent of the selling price and producers will actually bear the tax burden of ________ percent of the selling price. A) 80; 20 B) 13; 15 C) 46; 54 D) 22; 6
The cross-price elasticity of demand for coffee and coffee-cream is likely to be
A) greater than zero. B) less than zero. C) zero. D) infinity.
The statement: "If everyone trades in the competitive marketplace, all mutually beneficial trades will be completed, and the resulting equilibrium allocation of resources will be economically efficient." is formally known as:
A) the law of supply and demand. B) the first theorem of supply and demand. C) the first theorem of welfare economics. D) the first theorem of efficiency in economics.