What causes a production possibilities frontier to shift outward?
What will be an ideal response?
A production possibilities curve shifts outward with economic growth, which occurs with an increase in resources or a positive technology change.
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Capital and labor are distinct from technology since ________
A) technology is exogenous B) technology is rival in its use C) capital and labor are physical things D) technology is a physical thing
If a consumer buys less gasoline because gas prices increased by 100 percent, even though all other prices have also increased by 100 percent, then
A) the consumer is paying too close attention to changes in relative prices. B) wages and prices are too flexible. C) the consumer has been fooled by money illusion. D) inflation is not a problem in the economy.
If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as
A) floating. B) speculating. C) hedging. D) appreciating.
Refer to the provided graph. Minimum efficient scale occurs at
A) Q3. B) Q2. C) Q1. D) Q4.