An outward shift in the entire production possibilities fron

An outward shift in the entire production possibilities frontier A. represents economic decline. B. means that previous levels of production are now unobtainable. C. means that the only way the economy can increase the production of one good D. 16.) is by producing less of an alternative good. represents economic growth. 17) Which point best represents the economy in a depression? A. Point H B. Point F C. Point I D. Point G 18.) Ir we were at point more round-the-world trips. it would be possible to produce more heart transplants and A. P B. Q C. R D. S Which statement is true? A. The economic problem is limited to poverty. B. Scarcity is no longer an economic problem in the United States. C. If we all had more money there would be less scarcity. D. None of these statements are true. 19.) Which statement is true? A. B. C. D. 20.) The United States is usually inside our production possibilities curve. The United States is usually outside our production possibilities curve. The United States is usually on our production possibilities curve. None of the statements are true. 2-4

Solution

16) D) Represents economic growth. Outward shift in the economy\'s PPF shows that the economy\'s productive potential is increasing. More goods can be produced, output incrases and the PFF curve shifts outward to the right.

17) D) Point G best represents an economy in depression.

19) D) None of these statements are true. The economy is affected by scarcity but it is not limited to poverty. There are many other problems which have an effect on economic problems and poverty.