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Answers to Practice PPF Questions

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Living the econnomic dream......

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Answers to Practice PPF Questions

  1. 1. Answers to Practice PPF Giddy up
  2. 2. New robot making technology Q Q Robots Pizzas Question #1 2 A shift only for Robots
  3. 3. Decrease in the demand for pizza Q Q Robots Pizzas Question #2 3 The curve doesn’t shift! A change in demand doesn’t shift the curve
  4. 4. Mad cow disease kills 85% of cows Q Q Robots Pizzas Question #3 4 A shift inward only for Pizza
  5. 5. Destruction of power plants Q Q CapitalGoods(Guns) Consumer Goods (Butter) Question #4 5 Decrease in resources decrease production possibilities for both
  6. 6. Faster computer hardware Q Q CapitalGoods(Guns) Consumer Goods (Butter) Question #5 6 Quality of a resource improves shifting the curve outward
  7. 7. Many workers unemployed Q Q CapitalGoods(Guns) Consumer Goods (Butter) Question #6 7 The curve doesn’t shift! Unemployment is just a point inside the curve
  8. 8. Significant increases in education Q Q CapitalGoods(Guns) Consumer Goods (Butter) Question #7 8 The quality of labor is improved. Curve shifts outward.

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