Suppose that an economy can produce various combinations of fish and bread. If more people with strong fishing skills became employed in this economy, how would the production possibilities curve (PPC) change?
a. The PPC would shift outward on the fish axis, but would not change on the bread axis.
b. The PPC would shift inward equally along both the fish and the bread axes.
c. The PPC would shift outward equally along both the fish and the bread axes.
d. The PPC would shift inward on the bread axis, but would not change on the fish axis.
a
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An upward shift of the planned expenditure curve resulting from a decrease in the price level corresponds to
A) aggregate demand shifting to the left. B) a movement up along the aggregate demand curve. C) a movement down along the aggregate demand curve. D) aggregate demand shifting to the right.
The condition, MRS1,'C' = w ', describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.