When Using a Production Possibilities Frontier (PPF), a Trade-Off Is

question 133

Multiple Choice

When using a production possibilities frontier (PPF) , a trade-off is demonstrated by:

• A) an outward shift of the PPF.
• B) an inward shift of the PPF.
• C) a movement from a point inside the PPF to a point on the frontier.
• D) a movement along the PPF.

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Definitions:

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to price changes.

Demand Determined

A market characteristic where the quantity of products or services provided is primarily set by the level of demand.

Fixed Supply

A situation where the quantity of a specific good available in the market cannot be altered in the short term.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.