Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is France's most likely future PPF?
A) PPF2
B) PPF1
C) PPF0
D) either PPF0 or PPF1
E) None of the above because economic growth will not happen in India.
B
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Which of the following policy combinations were used by the government during the financial crisis of 2007-2009 in the U.S.?
A) Income tax rates were increased and payroll taxes were reduced. B) Payroll tax rates were increased and government spending was reduced. C) A combination of both fiscal and monetary policies were used. D) The eligibility period for unemployment insurance was shortened.
"Government should act to reduce poverty levels."
A) This statement is a normative statement. B) This statement is a positive statement. C) This statement is an example of the fallacy of composition. D) This statement is an example of the post hoc fallacy.