What causes a production possibilities frontier to shift outward?
What will be an ideal response?
A production possibilities curve shifts outward with economic growth, which occurs with an increase in resources or a positive technology change.
Economics
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At $6 per steak, consumers are willing to buy two steaks. At a price of $2, consumers are willing to buy six steaks. The elasticity of the market demand curve between P = $6 and P = $2 (dropping all minus signs) is
a. 0.33. b. 1. c. 2. d. 4.
Economics
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
a. Wages are flexible in the short run. b. Wages are flexible in the long run. c. Wages are fixed in the long run. d. Wages are fixed in the short run.
Economics