The Figure Given Below Represents the PPC in Two Nations

question 43

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-The downward slope of the demand curve is attributed to:

• A)the inverse relationship between price and quantity demanded.
• B)the direct relationship between income and quantity demanded.
• C)the direct relationship between price and quantity demanded.
• D)the inverse relationship between income and quantity demanded.
• E)the direct relationship between consumer preferences and quantity demanded.

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Definitions:

Gross Domestic Product

An indicator of a nation's economic output, reflecting the aggregate worth of all produced goods and services within a defined timeframe.

Natural Resource Depletion

Refers to the exhaustion of raw materials within an environment due to overuse, misuse, or unsustainable use, often leading to long-term environmental and economic consequences.

National Income Accounting

A system that records a country's economic transactions and measures its economic performance.

Circular Flow

An economic model that depicts how money moves through the economy, from production to income to consumption and back to production.