Technological Change Is Represented on a Macro Production Possibilities Frontier

question 242

Multiple Choice

Technological change is represented on a macro production possibilities frontier (PPF) by a(n)

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

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Definitions:

Farm Subsidies

Financial assistance provided by government to farmers, intended to stabilize food prices, ensure a stable food supply, and support farmers' incomes.

Value of Production

The total worth of the goods and services produced by a company, industry, or economy.

Tariff

A tax imposed on imported goods and services, which can affect trade balances, prices, and even the economy as a whole.

Trade Deficit

A scenario in which a nation imports more goods and services than it exports, leading to a negative trade balance.