FIGURE 12- 2 the Production Possibilities Boundary Shows Possible Combinations

question 82

Multiple Choice

FIGURE 12- 2 The production possibilities boundary shows possible combinations of guns and butter that can be produced by a country.The lower diagram shows demand and supply for butter.

-Refer to Figure 12- 2.Suppose this economy is allocatively efficient at Q1 units of butter.Now suppose there is an increase in demand for butter from D to D1.After this shift in demand,

• A)the marginal value to consumers of butter is less than the marginal cost to producers; the price of butter (relative to the price of guns)rises; the economy moves to output Q2 of butter and point (c)on the PPB.
• B)the price of guns (relative to the price of butter)rises and the economy moves to point (a)on the PPB.
• C)the marginal value to consumers of butter is greater than the marginal cost to producers; the price of butter (relative to the price of guns)rises; the economy moves to output Q2 of butter and point (c)on the PPB.
• D)the increase in the price of butter (relative to the price of guns)will cause the demand curve to shift back down to D and allocative efficiency will be maintained.
• E)the supply curve will shift up to S1 and allocative efficiency will be maintained.

Recognize the factors that contribute to accidents and their impact on children of different socioeconomic statuses.

Identify common minor illnesses in childhood and comprehend the significance of immunizations.

Understand the nature of pretend play and its implications for cognitive and social development.

Differentiate between various forms of reasoning used by children, including transductive reasoning and the concept of conservation.

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Definitions:

Fee Simple Absolute

The most complete form of ownership of real property, which includes the total bundle of rights without duration limit and with the freedom to use or dispose of the property as the owner sees fit.

Land Ownership

The legal right to possess, use, and control a designated area of land.

Life Estate

A property interest that gives a person the right to possess and use property for a time that is measured by his lifetime or that of another person.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by all parties involved, in order to be enforceable.