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Refer to the Graph Below

question 93

Multiple Choice

Refer to the graph below. Refer to the graph below. Which of the shifts explains what would happen to the production possibility curve if improved technologies increased the production of prekindergarten (Pre-K) toys by 25 percent and the production of children's toys by 50 percent? A) I B) II C) III D) IV Which of the shifts explains what would happen to the production possibility curve if improved technologies increased the production of prekindergarten (Pre-K) toys by 25 percent and the production of children's toys by 50 percent?

Definitions:

Autonomous Consumption

Describes the expenditure that consumers will make even when they have no income, considering it as a basic level of consumption driven by needs.

Saving

The act of setting aside money for future use, reducing current consumption.

Induced Consumption

Consumer spending that increases or decreases as a result of changes in income, as opposed to autonomous consumption that does not change with income.

Disposable Income

Income available to a household or individual after taxes have been paid, available for spending or saving.