Refer to Figure 17.2. Ceteris paribus, if the economy produces at point C, which of the following is most likely?
A. The PPC will not shift in the future.
B. The PPC will shift outward in the future.
C. The economy will continue to have point C as a choice in the future.
D. The PPC will shift inward in the future.
Answer: D
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Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when
A) it can't produce any more bikes unless it gives up clothing. B) it produces equal amount of bikes and clothes. C) the marginal social benefit of producing a bike equals the marginal social cost of producing a bike. D) the prices charged for the goods are as low as possible.
To the stockholder, corporate stock represents
A) a source of fixed interest income. B) a loan. C) ownership. D) a guaranteed return of principal.
Investment in human capital
A) is quite different from and has a much lower return than investment in physical capital. B) is just like investment in physical capital and has a return similar to that earned from other investments. C) is just like investment in physical capital but has a much greater return than do other investments. D) is not comparable to other investments in any way since human capital is embodied in the person.
Which of the distributive standards does NOT involve a value judgment?
A) productivity standard B) egalitarian standard C) merit standard D) All of the standards involve value judgments.