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harry32 harry32
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A year ago

The diagram below shows two production possibilities boundaries for Country X.

Short description: A graph plots consumer goods against capital goods. Long description: The horizontal axis represents consumer goods. The vertical axis represents capital goods. The graph plots two concave down decreasing curves. The first curve, P P B subscript 1 begins at a point on the vertical axis, passes through the points, F, A, and B, and ends at a point on the horizontal axis. The second curve, P P B subscript 2 begins at a point on the vertical axis (above the point where the first curve begins), passes through a point, E, and ends at a point on the horizontal axis (to the right of the first curve). The point, C lies near the horizontal axis and parallel to A. The point, D is to the right of point E.

FIGURE 1-4

Refer to Figure 1-4. An outward shift of the production possibilities boundary from PPB1 to PPB2 indicates which of the following?



▸ more of the country's resources are being used

▸ the country's resources are being used less efficiently

▸ an increase in the price of raw materials for consumer goods

▸ an increase in the price of raw material for capital goods

▸ growth in the country's productive capacity
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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sania24sania24
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A year ago
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harry32 Author
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A year ago
this is exactly what I needed
bkrandy
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Yesterday
Correct Slight Smile TY
gma_of_7
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2 hours ago
Thank you, thank you, thank you!
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