In the diagram below, the following would be a possible explanation for the difference between PPF1 and PPF2. (Assume the starting point is with all butter and no guns.) 
A. A dramatic shock to the resources needed to produce butter.
B. A technological improvement in the production of butter and guns.
C. A technological improvement in the production of butter.
D. A technological improvement in the production of guns.
Answer: C
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In 1929, the CPI equaled 0.171 and in 1930, the CPI equaled 0.167. These data provide evidence of a period of:
A. trade deficit. B. expansion. C. deflation. D. inflation.
The only way a consumer can optimize at a corner of her budget is if at least one of the goods is not essential.
Answer the following statement true (T) or false (F)
Which of the following is a microeconomic concern?
A) the rate of economic growth in the United States B) the current unemployment rate in the United States C) consumer behavior D) national output of the United States
Equilibrium
What will be an ideal response?