Consider the Production Possibilities Boundary (PPB)of an Economy

question 129

Multiple Choice

Consider the production possibilities boundary (PPB) of an economy.Economic growth is illustrated by

• A)the negative slope of the PPB.
• B)an outward shift of the PPB.
• C)a movement onto the PPB.
• D)a movement along the PPB.
• E)the movement to a point outside of the PPB.

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Definitions:

Demand Curve

A graph depicting the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at that price.

Monopsony

A market situation where there is only one buyer for a product or service, giving the buyer substantial control over the market price.

Collude

The act of cooperating or conspiring, especially in a secretive manner among firms, to limit competition or manipulate market prices.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to offer at those wages.