The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 135

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.A shift of the production possibilities boundary from PPB₁ to PPB₂ implies

• A)a movement from full employment to some unemployment.
• B)that if point E is the new choice of outputs,productivity has increased in the consumer goods industry.
• C)that productive capacity in the capital goods industries has improved.
• D)an inevitable decrease in total output.
• E)that productive capacity in the consumer goods industry has improved.

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Definitions:

Distribution System

A network through which a company supplies its products or services to its customers.

Ruling Class

The social class that holds the majority of wealth, power, and influence within a society, often making and enforcing policies and decisions.

Elite Groups

A small, select group of people within society who hold a disproportionate amount of wealth, privilege, political power, or skill.

Terrorism

The use of violence and intimidation, especially against civilians, in the pursuit of political aims.