How Will a Reduction in the National Unemployment Rate Affect

question 31

Multiple Choice

How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF) ?

• A) It will cause the PPF to shift inward.
• B) It will cause the PPF to shift outward.
• C) It will move society to a point inward,to a point farther away from the PPF.
• D) It will move society outward,to a point closer to or on the PPF.
• E) It will push society to a point outside its PPF.

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Definitions:

Elastic

A characteristic of goods or services with demand that is significantly responsive to changes in price.

Value Of Land

The worth of a piece of land determined by its characteristics, location, and potential uses.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Elastic

A characteristic of demand or supply indicating a high responsiveness to changes in price.