Through War,many of the Factories in Country 1 Are Destroyed

question 29

Multiple Choice

Through war,many of the factories in country 1 are destroyed and many of its people are killed.As a result,the country's

• A) production possibilities frontier (PPF)after the war has probably shifted to the right compared to its PPF prior to the war.
• B) PPF after the war has probably shifted to the left compared to its PPF prior to the war.
• C) PPF after the war is probably the same PPF as before the war.
• D) ability to produce goods and services has increased.
• E) b and d

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Definitions:

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and income from investments, influencing their purchasing power and consumption patterns.

Demand Shift

Occurs when a change in factors other than the price of the good itself leads to a change in consumer demand, causing the demand curve to move left or right.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to no shortage or surplus.

MR

Short for Marginal Revenue, it is the increase in revenue from selling one additional unit of a good or service.