Click Submit to complete this assessment Question 20 The hig

Click Submit to complete this assessment Question 20 The higher the anticipated inflation rate a the less workers will ask for in wages, and the less firms will agree to pay b the higher the real wage increases offered by firms C. the more workers will ask for in wages, and the more firms will agree to pay d the higher the real wage increases asked for by workers e e the more workers will ask for in wages, and the less firms will agree to pay Cv

Solution

Ans6) a is the correct option. the quantity of a produced good. Production possibility Frontier depicts Maximum output possibilities witg the given set of resources

Ans 7) a is the correct option. resources must be equally adaptable at producing either product It means the opportunity cost is constant as production of different good is changing.

Ans8) e is the correct option. Will shift the production possibility Frontier outward but necessary to a parallel position. Because of the change in the technology both the goods can be produced efficiently

Ans9) a is the correct option. Opportunity cost of A increases as the production of A increases. Production possibility Frontier measures the opportunity cost or trade off between two goods