Use the Following to Answer Questions

question 19

Multiple Choice

Use the following to answer questions :
Figure1-3
-As country A's economy grows, what will happen to the PPF in Figure 1-3?

• A)The PPF will be stationary.
• B)The PPF will shift inward.
• C)The PPF will shift outward.
• D)The PPF will shift outward then back in, until it is back at its original position.
• E)None of the above.

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol.

Implicit Marginal Tax Rate

The rate at which additional income is taxed, including the loss of government benefits or subsidies as income rises.

Food Stamp Benefits

Government-provided assistance to individuals and families with low income to help them afford groceries, officially known as the Supplemental Nutrition Assistance Program (SNAP).

Medicaid Benefits

The range of healthcare services covered by Medicaid, a government program that assists with medical costs for individuals with limited income and resources.