As a Nation's Average Education Level Increases, the Nation's Level

question 106

Multiple Choice

As a nation's average education level increases, the nation's level of productivity

• A) Increases, and the production possibilities curve shifts to the right.
• B) Decreases, and the nation's production possibilities curve shifts to the left.
• C) Increases, and the nation moves to a new point on the same production possibilities curve.
• D) Decreases, and the nation moves to a new point on the same production possibilities curve. Human and physical capital increase the productivity of a nation's workers.

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Definitions:

Typical Consumer

A typical consumer represents an average or standard unit of analysis in economic models, used to predict behavior patterns in the marketplace.

Bureau of Labor Statistics

The U.S. government's entity charged with the acquisition and study of statistics regarding employment market dynamics, workplace environments, and price alterations.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the cost of living.

Basket of Goods

A selection of various items that are used to track inflation and the cost of living over time.