Figure 2.3 Figure 2.3 Shows Various Points on Three Different Production Possibility

question 31

Multiple Choice

Figure 2.3

Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. A movement from Y to Z:

• A)represents an increase in the demand for plastic products.
• B)could occur because of general technological advancements.
• C)is the result of advancements in food production technology.
• D)is the result of advancements in plastic production technology.

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Definitions:

Perfectly Competitive Industry

Describes a market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller has control over prices.

Variable Input

An input whose quantity the firm can vary at any time (for example, labor).

Long-Run Equilibrium

A state where all factors of production are variable, leading to the optimal distribution of resources in the market.

Demand Curve

A chart that illustrates the link between a product's cost and the amount of the product consumers want to buy at those prices.