The leader of a political party made the following campaign promise: "My administration will increase national defense without requiring sacrifices elsewhere in the economy." The promise can be kept if: (i) the economy moves along the production possibilities in the direction of a greater quantity of defense. (ii) the economy moves from a point inside the production possibilities curve toward a point on the production possibilities curve. (ii) the production possibilities frontier shifts outward due to an improvement in technology. a. (ii) O b. either (ii) or (iii) occur c. (iii) O d. (i), (ii) and (iii) О е. ()
The leader of a political party made the following campaign promise: "My administration will increase national defense without requiring sacrifices elsewhere in the economy." The promise can be kept if: (i) the economy moves along the production possibilities in the direction of a greater quantity of defense. (ii) the economy moves from a point inside the production possibilities curve toward a point on the production possibilities curve. (ii) the production possibilities frontier shifts outward due to an improvement in technology. a. (ii) O b. either (ii) or (iii) occur c. (iii) O d. (i), (ii) and (iii) О е. ()
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 7SQ
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The leader of a political party made the following campaign promise...
Transcribed Image Text:The leader of a political party made the following campaign promise: "My administration will increase national defense without requiring
sacrifices elsewhere in the economy." The promise can be kept if:
(i) the economy moves along the production possibilities in the direction of a greater quantity of defense.
(ii) the economy moves from a point inside the production possibilities curve toward a point on the production possibilities curve.
(ii) the production possibilities frontier shifts outward due to an improvement in technology.
a.
(ii)
O b. either (ii) or (iii) ocur
(iii)
O d. (i), (ii) and (iii)
О е. ()
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