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:

Total Costs

The total of all costs associated with producing goods or services, encompassing both fixed and variable expenses.

Average Variable Costs

The total variable costs divided by the quantity of output produced, representing the variable costs per unit of output.

Cars

Motor vehicles designed primarily for passenger transportation.

Long-Run Marginal Cost Curve

An economic graph showing the change in total cost that comes from producing one additional item when input prices are variable and all inputs are considered.