The Figure Given Below Represents an Economy Producing Corn and Planes

question 60

Multiple Choice

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2

-Which of the following will bring about an inward shift of a production possibilities curve [PPC]?

• A)A decrease in the amount of resource employment
• B)An increase in the working-age population
• C)An increase in unemployment
• D)A decrease in the availability of natural resources
• E)An increase in the amount of capital available

---

Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Saving

The process of setting aside a portion of current income for future use, either by depositing money in a bank or purchasing financial instruments.

Benefits-Received Principle

A theory of fairness holding that taxpayers should contribute to government (in the form of taxes) in proportion to the benefits they receive from public expenditures.

Public Goods

Items whose consumption is not depleted by an additional consumer and from which individuals cannot be excluded from using.