Use the Following to Answer Questions

question 3

Multiple Choice

Use the following to answer questions :
Figure: Four Markets for DVDs
-(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. If D₁ or S₁ is the original curve and D₂ or S₂ is the new curve, which of the graphs illustrates what may happen in the market for DVDs if there is an increase in the cost of a movie ticket at the local theater?

• A)A
• B)B
• C)C

Recognize the implications of producing at various points on or inside the production possibility frontier (PPF) in terms of efficiency, unemployment, and resource utilization.

Describe the impact of technological advancements on the production possibilities frontier.

Understand the principle of increasing opportunity cost and its relationship to the shape of the production possibilities frontier.

Analyze the factors that can cause the production possibility frontier to shift and the significance of such shifts.

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Definitions:

White Flight

The phenomenon of white people moving out of urban areas, particularly those with increasing minority populations, into suburban or rural areas.

Poor People

Individuals or groups who lack financial resources or sufficient income to meet their basic needs for food, shelter, and healthcare.

Federal Policies

Directives, regulations, laws, and actions taken by the national government that influence the country's domestic and foreign affairs.

Stigmatizing

involves marking or branding a person or group as less worthy or disgraceful, often leading to discrimination or social exclusion.