Author Question: The production possibilities frontier illustrates A) the maximum amount of inputs used to produce ... (Read 104 times)

nummyann · **on:** Jun 29, 2018

The production possibilities frontier illustrates

A) the maximum amount of inputs used to produce a particular output.
B) the minimum amount of inputs used to produce a particular output.
C) the maximum combination of two goods that can be produced with a given set of resources.
D) the minimum combination of two goods that can be produced with a given set of resources.
E) none of the above.

Question 2

A consumer has 100 to be spent on tables and chairs. If his income increases to 200, the prices of the goods remaining unchanged, his budget constraint:

A) pivots to the left along the vertical axis.
B) pivots to the right along the horizontal axis.
C) shifts to the left.
D) shifts to the right.