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b. there will be more inefficiency c. of inflationary pressures. d. workers are

ID: 1141698 • Letter: B

Question

b. there will be more inefficiency c. of inflationary pressures. d. workers are not equally suited to all tasks. 15. Adding more resources causes a. the production possibilities curve to shift in. b. the production possibilities curve to shift out. c, upward movement along a production possibilities curve d. downward movement along a production possibilities curve. Exhibit 2-18 Production possibilities curves Year X Capital goods 16. In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country a. is producing the same number of capital goods in both years b. is producing the same number of consumption goods in both years c. has shown no growth between Year X and Year Y d. has higher unemployment in Year X than in Year Y 17. In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A: Exhibit 2-17 Production possibilities curve Consumption goods Capital goods

Explanation / Answer

15.

B

Adding more resources, will cause the more production of goods. It will make PPC curve to move outward direction.

16.

B

As per the given graph, consumption goods are same for the country in both the years, though the capital goods increase.