The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 26

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. A shift of the production possibilities boundary from PPB1 to PPB2 implies

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

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Definitions:

Wages Earned

Refers to the total amount of wages that have been earned by employees for their work during a particular period, regardless of whether they have been paid.

Normal Characteristics

Typical features or qualities that are expected in the context of a specific situation, product, or entity.

Capital Letter

An uppercase letter used to signify the start of sentences or to denote proper nouns, emphasizing their importance.

Categorical Data

A type of data that can be divided into groups or categories that are mutually exclusive and without any natural order.