Figure 1 Capital Goods M N K Consumer Goods 1. Which movement between two points represents economic growth? A. J to K B. K to L C. L to M D. M to N

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
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Figure 1
Capital Goods
M
P
C.
D. M to N
Consumer Goods
1. Which movement between two points represents economic growth?
A. J to K
B. K to L
L to M
2. Assuming the inner curve is our current production possibilities frontier, points J, N
and K represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
3 Assuming the inner curve is our current production possibilities frontier, points M and
L represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
4. Assuming the inner curve is our current production possibilities frontier, points O and
P represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
Transcribed Image Text:Figure 1 Capital Goods M P C. D. M to N Consumer Goods 1. Which movement between two points represents economic growth? A. J to K B. K to L L to M 2. Assuming the inner curve is our current production possibilities frontier, points J, N and K represent A. an inefficient use of resources. B. an output that is not possible to produce. C. points of unemployed resources. D. points of fully employed resources. 3 Assuming the inner curve is our current production possibilities frontier, points M and L represent A. an inefficient use of resources. B. an output that is not possible to produce. C. points of unemployed resources. D. points of fully employed resources. 4. Assuming the inner curve is our current production possibilities frontier, points O and P represent A. an inefficient use of resources. B. an output that is not possible to produce. C. points of unemployed resources. D. points of fully employed resources.
Expert Solution
Step 1

Production possibility frontier shows the different different combination of production of two different goods with the given level of resources and constant technology level. PPF either shift or rotate. PPF shifts when resources level change on the other PPF rotate when technology level of goods change. 

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