The Figure Given Below Represents an Economy Producing Corn and Planes

question 21

Multiple Choice

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

-Refer to Figure 2.2. Assume that the economy experiences a 20% drop in the work force. Which of the following graph(s) in the figure describe(s) the change in the economy's production possibilities curve [PPC]?

• A)Graph A
• B)Graph B
• C)Graph C
• D)Graph B and C
• E)Graph A and C

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Definitions:

Inputs

Resources used in the production process, including labor, capital, materials, and energy.

Marginal Output

The additional amount of output that is produced as a result of a one unit increase in the input of a production process.

Resource

Assets, materials, or inputs used to produce goods and services, including natural resources, human resources, and capital.

AVC Curve

Represents the Average Variable Cost Curve, which shows the relationship between a firm's output and the variable costs per unit of output, typically declining and then rising.