The United States uses tax funds to build and repair the interstate highway system and to provide health care services via Medicare. Suppose Medicare services are on the horizontal axis and highway miles are on the vertical axis of a PPF
If the government decides to reduce funding to Medicare, this change would be shown as A) a shift out of the PPF.
B) the PPF becoming flatter.
C) a movement down along the PPF.
D) a movement up along the PPF.
D
You might also like to view...
Objections to free trade
a. arise because trade harms everyone b. arise when some groups within a nation are harmed by trade c. arise because importers and exporters are often the same people d. are inconsistent with economic rationality e. arise because people prefer not to consume foreign-produced goods
Suppose there is an increase in the supply of a good. Which of the following statements is true?
A. The closer the demand curve is to being vertical, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity. B. The closer the demand curve is to being horizontal, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity. C. The closer the demand curve is to being vertical, the smaller the decrease in equilibrium price, and the larger the increase in equilibrium quantity. D. The closer the demand curve is to being vertical, the larger the increase in equilibrium price, and the smaller the decrease in equilibrium quantity.
Which of the following shows the demonstration effect?
a. Ads that reveal the weak points of advertising b. Ads that make consumers want something they never wanted before c. Ads that push products that need to be shown how to use d. Ads that cause controversy among critics of advertising
What is price elasticity of demand?