The Economy Was at Point a Producing 100X and 200Y

question 125

Multiple Choice

The economy was at point A producing 100X and 200Y.It moved to point B where it produces 200X and 300Y.It follows that

• A) point A may have been a point below the economy's PPF,while point B may lie on the PPF.
• B) the economy's PPF could have shifted outward and point A was a point on the economy's old PPF.
• C) the economy has moved from one point on its PPF to another point on the same PPF.
• D) a or b
• E) a or c

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Savings Account

A deposit account held at a bank or financial institution that provides principal security and a modest interest rate.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.