Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 8, Problem 5Q
.
To determine
The effect of the following incidences on PPC:
(a) Effect of Black Death of Europe.
(b) Effect of change in composition of labor force after
(c) Effect of discovery of Shale gas.
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Students have asked these similar questions
Combinations of points which are outside of the PPC curve are impossible to achieve because of limitations in resources
Select one:
True
False
If it is more efficient for a country to produce a mixture of all goods (a combination that contains both products on a two dimensional PPC), which statement regarding their PPC is correct?
a) This curve is a concave PPC.
b) This curve is a convex PPC.
c) This curve does NOT demonstrate the Law of Increasing Opportunity Cost.
d) This curve does NOT demonstrate the Law of Diminishing Returns.
e) It is best for this economy to produce inside the PPC and NOT on the curve.
Supply-side economic policy is designed to
Move the economy from a point inside the PPC to a point on it, and shift the aggregate supply curve to the left.
Move the economy from a point inside the PPC to a point on it, and shift the aggregate supply curve to the right.
Shift the production possibilities curve outward and shift the aggregate demand curve to the right.
Shift the production possibilities curve outward and shift the aggregate supply curve to the right.
Chapter 8 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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