6. Which statement is true? L. A negative productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. II. A positive productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. III. The slope of the production possibilities frontier is the opportunity cost of producing an additional unit of a good in terms of the other good. a. only I and III are true b. only I is true c. only II and III are true d. only III is true e. only II is true
6. Which statement is true? L. A negative productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. II. A positive productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. III. The slope of the production possibilities frontier is the opportunity cost of producing an additional unit of a good in terms of the other good. a. only I and III are true b. only I is true c. only II and III are true d. only III is true e. only II is true
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![6. Which statement is true?
I. A negative productivity shock to all goods and services can be represented as a shift
inwards of the Production Possibilities Frontier.
II. A positive productivity shock to all goods and services can be represented as a shift
inwards of the Production Possibilities Frontier.
III. The slope of the production possibilities frontier is the opportunity cost of producing an
additional unit of a good in terms of the other good.
a. only I and III are true
b. only I is true
c. only II and III are true
d. only III is true
e.
only II is true](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb43dd0be-f3ba-4ddd-85ae-1c54e0bcf462%2Fb45e98fb-3f6a-4c8d-b3de-a027f81c0e11%2Fizvep2i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Which statement is true?
I. A negative productivity shock to all goods and services can be represented as a shift
inwards of the Production Possibilities Frontier.
II. A positive productivity shock to all goods and services can be represented as a shift
inwards of the Production Possibilities Frontier.
III. The slope of the production possibilities frontier is the opportunity cost of producing an
additional unit of a good in terms of the other good.
a. only I and III are true
b. only I is true
c. only II and III are true
d. only III is true
e.
only II is true
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