The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is below point K, the next year's PPF would
A) shift inward along the vertical axis.
B) shift outward along the horizontal axis farther than the new PPF shown in the figure.
C) shift outward along the vertical axis, not along the horizontal axis.
D) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.
E) shift inward along the horizontal axis.
The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies.
Question 2
The consumption function shifted upward from 1960 to 2013 because as economic growth brought ________ expected future income and ________ wealth, people chose to ________ their consumption expenditure from a given level of income.
A) higher; greater; decrease
B) lower; greater; increase
C) higher; less; increase
D) higher; greater; increase
E) higher; less; decrease
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