Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 40, Problem 2MCQ
To determine
The correct option that depicts
Expert Solution & Answer
Answer to Problem 2MCQ
Option a is correct.
Explanation of Solution
Explanation for the correct option:
a.
The outward shift of the PPC curve represents long-term economic growth which is shown below:
Graph 1
Therefore, option a is correct.
Explanation for incorrect options:
b.
Inward shift will reduce production thus economic growth cannot be ensured in the long run.
c.
Movement on the PPC curve represents the choice of production between two products.
d.
Similarly, movement from one point to another point will represent the production of one product is more than the production of another product.
e.
Movement beyond the PPC will represent the production beyond the availability of resources.
Economics Concept Introduction
Production possibility curve (PPC): PPC shows the graphical representation of a different combination of goods that can be produced by using an available factor of production.
Chapter 40 Solutions
Krugman's Economics For The Ap® Course
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