-In the Above Figure, in Order for This Country to Move

question 370

Multiple Choice

-In the above figure, in order for this country to move from production possibilities frontier PPF₁ to PPF₂, it might

• A) increase the skills and productivity of its work force.
• B) put all unemployed resources to work producing desired output.
• C) engage in exchange with other nations.
• D) increase the average level of prices for all goods produced and consumed.

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Definitions:

Proportional

Characterized by or corresponding in size, degree, or intensity according to a fixed ratio or relationship.

Price Elasticity

A measure indicating how much the quantity demanded of a good responds to a change in its price, often illustrating the sensitivity of demand to price changes.

Relatively Elastic

Characterizes a situation where the quantity demanded of a good or service changes significantly due to a small change in price.

Excise Tax

A tax directly levied on certain goods, services, and activities such as tobacco, alcohol, and gambling.