For each of the following scenarios pick the graph that best

For each of the following scenarios, pick the graph that best depicts what is being described. 1. The United States Government sets aside 2,000 square miles in Montana as a national park. (Click to select) 2. The United States experiences a period of high immigration. (Click to select) 3. The United States experiences a drought in the Midwest, making farmland less productive. Click toselect

Solution

Ans1) ans is C. Setting aside 2000 square miles will lead to underutilisation of resources and thus there will be leftwrard movement in the PPF but PPf will remain same.

2) ans is B. Because labor or factor of production increases leading to rightward shift of PPF or increasing capacity of an economy.

3)ans is C. In this case too PPF remains same, because of underutilisation there will be leftward shift of a point inside the PPF.