A country produces two goods: coconuts and umbrellas. Their production possibilities frontier (PPF) places coconuts on the x-axis and umbrellas on the y-axis. How would a drought that makes it difficult to grow coconuts but does not affect the production of umbrellas change the PPF? Neither the value of the x-intercept nor the y-intercept would change The value of the y-intercept would increase but the value of the x-intercept would not change The value of the x-intercept would increase but the value of the y-intercept would not change Both the value of the x-intercept and the y-intercept would increase The value of the y-intercept would decrease but the value of the x-intercept would not change The value of the x-intercept would decrease but the value of the y-intercept would not change
A country produces two goods: coconuts and umbrellas. Their production possibilities frontier (PPF) places coconuts on the x-axis and umbrellas on the y-axis. How would a drought that makes it difficult to grow coconuts but does not affect the production of umbrellas change the PPF? Neither the value of the x-intercept nor the y-intercept would change The value of the y-intercept would increase but the value of the x-intercept would not change The value of the x-intercept would increase but the value of the y-intercept would not change Both the value of the x-intercept and the y-intercept would increase The value of the y-intercept would decrease but the value of the x-intercept would not change The value of the x-intercept would decrease but the value of the y-intercept would not change
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A country produces two goods: coconuts and umbrellas. Their production possibilities frontier (
How would a drought that makes it difficult to grow coconuts but does not affect the production of umbrellas change the PPF?
Neither the value of the x-intercept nor the y-intercept would change
The value of the y-intercept would increase but the value of the x-intercept would not change
The value of the x-intercept would increase but the value of the y-intercept would not change
Both the value of the x-intercept and the y-intercept would increase
The value of the y-intercept would decrease but the value of the x-intercept would not change
The value of the x-intercept would decrease but the value of the y-intercept would not change
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