The Figure Given Below Represents an Economy Producing Corn and Planes

question 54

Multiple Choice

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2

-Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:

• A)the vertical intercept up but will not shift the horizontal intercept.
• B)the horizontal intercept to the right but will not shift the vertical intercept.
• C)the horizontal intercept to the left and the vertical intercept upward.
• D)the vertical intercept downward and the horizontal intercept to the right.
• E)neither the horizontal intercept nor the vertical intercept.

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive market environment.

Consideration

A fundamental component in contract law that involves something of value exchanged between parties, which is necessary for a contract to be legally binding.

Binding

Describes an agreement or legal decision that is enforceable by law, meaning parties are legally obligated to comply with the terms.

Consideration

The benefit which must be bargained for between the parties and is the essential reason for a party entering into a contract.