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ris-2] Refer to the information provided in Figure 2.3 below to answer the quest

ID: 1132200 • Letter: R

Question

ris-2] Refer to the information provided in Figure 2.3 below to answer the questions that follow ppf2 Dpri Consumer goods Figure 2.3 19. Refer to Figure 2.3. Economic growth is represented by a A) shift from ppf2 to ppfl B) shift from ppfl to ppf2, C) movement along pp/ D) movement along pp 20. Refer to Figure 2.3. Which of the following will not cause the production possibility frontier to shift from ppf/l to ppf2 A) the discovery of previously unknown oil fields B) an improvement in technology C) an increase in the stock of capital D) a decrease in the unemployment rate 21. Refer to Figure 2.3. Which of the following will not cause the production possibility frontier to shift from ppfl to pp A) An unexpected mild spring results in a bumper crop of citrus fruit in both Florida and California. B) A change in immigration laws significantly increases the number of immigrant workers entering the country C) An innovation in desalinization technology allows for the more efficient conversion of salt water to fresh water D) A radiation leak at a nuclear power plant results in the long-term evacuation of a 10,000 square-mile area, which significantly reduces the nation's productive capacity

Explanation / Answer

19. Ans: Shift from PPF1to PPF2

Explanation:

Economic growth means production of both the goods in more quantities. So, an outward shift in PPF can represent an economic growth. A movement along a PPF means increase in production of one good but decrease in the production of another good. So, a movement along the PPF can not be termed as economic growth. Therefore, a Shift from PPF1to PPF2represent economic growth.

20. Ans: a decrease in the unemployment rate

Explanation:

Because unemployment does not have any relationship with PPF.

Other are the factors required for production. So, an improvement in technology and an increase in capital stock leads to a outward shift in PPF. And the discovery of preveously unknown oil field means an increase in natural resource which can be used for production. So, it can lead to a outward shift in PPF.

So, option [D] is the correct answer

21. Ans: A radiation leak at a nuclear power plant results in the long term evacuation of a 10,000 square mile area, which significantly reduces the nation's productivity capacity.

Explanation:

A reducton in the nation's productivity capacity will lead to an inward shift in PPF. So, option [D] is the correct answer.