Suppose the Economy Goes from a Point on Its Production

question 25

Multiple Choice

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it.Assuming that the PPF has not shifted,this could be due to

• A)a gain of resources.
• B)a loss of resources.
• C)technological improvement in the production of both goods.
• D)a new law that interferes with productive efficiency.

---

Definitions:

Generalize

The process of deriving general principles from specific instances, or making broad statements that apply across multiple cases.

Population

The total number of people living in a particular area or country.

Sample

A small part or quantity intended to show what the whole is like or to serve as a test.

Short Constructions

Short constructions are concise phrases or sentences used to communicate ideas succinctly and clearly.