A nuclear disaster in an economy would cause
(a) An economy's PPF to shift outwards away from the origin.
(b) A move along the PPF from left to right.
(c) The PPF to shift inwards towards the origin.
(d) A move along the PPF from right to left.
Answer: (c) The PPF to shift inwards towards the origin.
You might also like to view...
If a currency rapidly depreciates, what are the possible negative results to the economy of using contractionary monetary policy to address the depreciation?
What will be an ideal response?
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
a. The development of strong labor unions. b. A sharp increase in the legal minimum wage. c. An increase in expenditures on education and capital investment. d. Rapid growth rate of the money supply.
A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level
a. True b. False Indicate whether the statement is true or false
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary