Macroeconomics 16th Edition by Campbell R. McConnell Test bank

      
       A) the acquisition of more education and training by its labour force 
       B) the widespread application of irrigation to its agricultural land
       C) an increase in the rate of unemployment
       D) the discovery of new super-conductivity materials which makes manufacturing more efficient
      

 

172)       Which of the following will shift the production possibilities curve to the right?

      
       A) an increase in the unemployment rate from 6 to 8 percent 
       B) a decline in the efficiency with which the present labour force is allocated
       C) a decrease in the unemployment rate from 8 to 6 percent
       D) a technological advance which allows farmers to produce more output from given inputs
      

 

173)       Other things equal, which of the following would shift an economy's production possibilities curve to the left?

      
       A) the discovery of a low-cost means of generating and storing solar energy  
       B) the entrance of more women into the labour force
       C) a law requiring mandatory retirement from the labour force at age 55
       D) an increase in the proportion of total output which consists of capital or investment goods
      

 

174)      

 Refer to the above diagram. An improvement in technology will:

      
       A) shift the production possibilities curve from PP₁to PP₂.      
       B) shift the production possibilities curve from PP₂to PP₁.
       C) move the economy from A to C along PP₁.
       D) move the economy from A, B, or C on PP₁to D.
      

 

175)      

 Refer to the above diagram. Which one of the following would shift the production possibilities curve from PP₁ to PP₂

      
       A) immigration of skilled workers into the economy
       B) worsening of the AIDS epidemic
       C) an increase in consumer prices
       D) a reduction in the age of retirement.
      

 

176)       Which situation would most likely shift the production possibilities curve for a nation in an outward direction?

      
       A) a decrease in the quality of products      
       B) an increase in the supply of resources
       C) a decrease in the state of technology
       D) an increase in the amount of discrimination
      

 

177)       Which situation would most likely cause a nation's production possibilities curve to shift inward?

      
       A) the construction of more capital goods