Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. Which of the following is most likely to shift the production possibility frontier from ppf2 to ppf1?
A. the purchase of government Treasury bills
B. a change in consumer tastes
C. a decrease in the general educational level of the population
D. moving resources from consumer goods to capital goods
Answer: C
You might also like to view...
Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, how many pounds of berries will be sold?
A) 200 B) 300 C) 400 D) 600 E) 800
If the FOMC orders the sale of T-bills in the open market, then bank reserves are
a. decreased, but the money supply will remain unchanged. b. decreased, and a multiple contraction of the money supply will occur. c. increased, but the money supply will remain unchanged. d. increased, and a multiple expansion of the money supply will occur.
An increase in the output price will increase the firm's demand for labor, all else equal
a. True b. False Indicate whether the statement is true or false
Suppose the economy experiences a recessionary gap. Policymakers who believe that the private sector has failed to provide adequately, a host of services that would benefit society would favor which of the following policies to close the gap?
A) subsidies to private firms to spur production B) decreases in income tax rates C) increases in government purchases D) decreases in interest rates