Given Below Is the Production Possibilities Schedule for Capital Goods

question 37

Multiple Choice

Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2

-A decrease in the quantity of available resources would be represented by:

• A)a steeper PPC.
• B)a point inside the PPC.
• C)an inward shift of the PPC.
• D)an upward movement along the PPC.
• E)a downward movement along the PPC.

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Definitions:

Indifference Curve

A graph representing combinations of goods or services between which a consumer is indifferent, showing preference levels.

Marginal Utilities

The added enjoyment or usefulness a consumer gets upon consuming an extra unit of a good or service.

Marginal Utility

The additional gain in enjoyment or utility that an individual experiences from consuming one more unit of a good or service.

Indifference Curve

A graphical representation in economics of all combinations of goods that provide a consumer with the same level of satisfaction or utility.