Below Is a Production Possibilities Curve Involving Tea and Videos

question 141

Multiple Choice

Below is a production possibilities curve involving tea and videos.

-Refer to the graph above to answer this question. Assume that the economy is producing on PPI at point A After the shift from PPI to PPII, what does point B represent?

• A) An increase in the production of videos but not of tea.
• B) An increase in the production of tea but not of videos.
• C) A decrease in the production of tea but not of videos.
• D) An increase in the production of both goods.

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Definitions:

Seven Years' War

A worldwide war that occurred from 1756 to 1763, engaging the major world powers of that era and impacting regions including Europe, North America, Central America, the coast of West Africa, India, and the Philippines.

British Government

The central government of the United Kingdom, responsible for creating laws, administering public services, and conducting foreign relations.

Liberty

Being unconfined by authority-imposed restrictions in society on the way one chooses to live, act, or politically align.

Stamp Act

A 1765 British law that imposed a tax on all paper documents in the American colonies, sparking widespread protest and helping to fuel the American Revolutionary movement.