The graph below illustrates the effect on the production possibilities frontier if the population grows, making more workers available. This new production possibilities frontier reflects the ability of society to
What will be an ideal response?
produce both more wings and more pizza.
Feedback:
The production possibilities frontier will expand if the population grows. With more workers, the society is able to produce more pizzas and wings than before. This causes the curve to move from PPF1 to PPF2, expanding up along the y axis and out along the x axis.
You might also like to view...
When we add a personal income tax to the macroeconomic model, the
A. multiplier becomes larger. B. multiplier becomes smaller. C. expenditures schedule shifts upward. D. expenditures schedule becomes steeper.
Why do free trade proponents dislike rules of origin in trade agreements?
A. It decreases the amount of international trade in the world. B. It decreases incentives for trade diversion. C. It increases the amount of international trade in the world. D. It increases incentives for trade deflection.
Which of the following is NOT an element of inflation targeting?
A) a public announcement of medium-term numerical targets for inflation B) an institutional commitment to price stability as the primary long-run goal C) an information-inclusive approach in which only monetary aggregates are used in making decisions about monetary policy D) increased accountability of the central bank for attaining its inflation objectives
Sales taxes are routinely collected by
A) the merchants selling the good or services. B) the Internal Revenue Service. C) the Department of Commerce. D) the Federal Trade Commission.