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(Questions 17 and 18 Pertain to Material in Appendix A

Question 25

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(Questions 17 and 18 pertain to material in Appendix A.)
Given the convex to-the-origin production-possibilities frontier (PPF) :
(Questions 17 and 18 pertain to material in Appendix A.)  Given the convex to-the-origin production-possibilities frontier (PPF) :   Suppose that we envision a very slight movement of production away from the equilibrium point E toward point F (with unchanged goods prices) . If this movement Takes place, (P<sub>X</sub>/P<sub>Y</sub>)  will be __________ (MC<sub>X</sub>/MC<sub>Y</sub>) , and production will thus move __________. A)  less than; back to point E B)  less than; further away from point E C)  greater than; back to point E D)  greater than; further away from point E
Suppose that we envision a very slight movement of production away from the equilibrium point E toward point F (with unchanged goods prices) . If this movement Takes place, (PX/PY) will be __________ (MCX/MCY) , and production will thus move
__________.


A) less than; back to point E
B) less than; further away from point E
C) greater than; back to point E
D) greater than; further away from point E

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