In the production possibilities framework, economic growth is depicted by the PPF
A) shifting leftward (toward the origin).
B) shifting rightward (away from the origin).
C) becoming a straight line rather than a bowed outward curve.
D) becoming bowed outward rather than a straight line.
B
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What is normally the ultimate cause of hyperinflation?
What will be an ideal response?
Which of the following would not satisfy the potential compensation criterion?
a. The winners from a policy change could compensate the losers so everyone would be better off. b. The policy change was approved by a unanimous vote. c. The policy change was a Pareto superior move d. The policy change moved from a Pareto optimal position to a non-Pareto optimal position.
Consider a market that is in equilibrium. If it experiences a decrease in demand, what will happen? The demand curve will shift to the:
A. left, and the equilibrium price and quantity will rise. B. left, and the equilibrium price will increase and the equilibrium quantity will decrease. C. left, and the equilibrium price and quantity will fall. D. right, and the equilibrium price and quantity will fall.
A movie theatre raises its admission prices by 10%, which results in a 10% reduction in the quantity of tickets demanded. The demand curve facing this firm is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.