-Suppose Puerto Rico and Hawaii Currently Have the Same Production

question 151

Multiple Choice

-Suppose Puerto Rico and Hawaii currently have the same production possibilities so that the above figure is the PPF for hotels and consumption goods in the two areas.Hotels are a capital good that,once built,will help produce still more consumption goods.If Puerto Rico produces more hotels than Hawaii,

• A) Hawaii's PPF will shift outward further than Puerto Rico's PPF.
• B) Hawaii's PPF will shift inward.
• C) Puerto Rico's PPF will not shift.
• D) Puerto Rico's and Hawaii's PPF will shift outward by the same amount.
• E) Puerto Rico's PPF will shift outward further than Hawaii's PPF.

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Definitions:

Perception

The process of organizing, identifying, and interpreting sensory information in order to represent and understand the environment.

Signal-detection Theory

A psychological theory that explains how we discern between information-bearing patterns and random noise in the environment.

Sensory Processes

The mechanisms by which information from the environment is absorbed, transformed into neural signals, and perceived.

Subliminal Perception

The ability to detect information below the conscious level of awareness, which may influence thoughts, feelings, or actions without one being consciously aware of the stimuli.