D Question 11 1 pts Answer the next question on the basis of the data given in t
ID: 1133043 • Letter: D
Question
D Question 11 1 pts Answer the next question on the basis of the data given in the following production possibilities table: tixes) Capital goods Consumer goods A B S DE E(24.0K 0 S 912 14 15 The data in the table indicate that increasing production of capital goods requires: increasing sacrifices of consumer goods decreasing sacrifices of consumer goods constant sacrifices of consumer goods no sacrifices of consumer goods D Question 12 1 pts A microeconomist would most likely study: the effects of an income tax reduction on the size of the national budget deficit how consumers respond to a change in gasoline prices the effects of aggregate consumer debt on overall consumption spending the relationship between the size of the money supply and the rate of inflation 1 pts D Question 13Explanation / Answer
question 11 :
According to the PPF table, increasing production of capital good requires increasing sacrifice of consumer goods.
Explanation :
It is so because according to the table when the first unit of capital good produce it leads sacrifice one unit of the consumer good ( from 15 to 14),when the second unit of capital good produce it leads sacriice of 2 units of conumer goods ( from 14 to 12), then the third unit of capital good lead to sacrifice 3 units of consumer goods and so on..
it means that increasing production of capital good requires increasing sacrifice of consumer goods.
Correct ans is a)
question 12:
A microeconomist would most likely study how consumer repond to a change in gasoline price.
It is so because microeconomist would study at the individual level not at aggregate or macro level.
Correct ans is B)
Other options are incorrect because these are studied by macroeconomist as these are aggregate level study.
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