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Figure 51 the Figure Shows a Linear Production Possibility Curve Representing

Question 68

Multiple Choice

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​.   -Refer to figure 5.1. What does the movement from point A to point B on the production possibility curve indicate?​ A) ​It indicates that there is an increase in the demand for luxury goods in the country. B) ​It indicates that there is an increase in the demand for necessities in the country. C) ​It indicates that there is a fall in the per capita income of the people in the country. D) ​It indicates that there is an increase in the price of the luxury goods. E) ​It indicates that there is a tax rebate provided by the government of the country.
-Refer to figure 5.1. What does the movement from point A to point B on the production possibility curve indicate?​


A) ​It indicates that there is an increase in the demand for luxury goods in the country.
B) ​It indicates that there is an increase in the demand for necessities in the country.
C) ​It indicates that there is a fall in the per capita income of the people in the country.
D) ​It indicates that there is an increase in the price of the luxury goods.
E) ​It indicates that there is a tax rebate provided by the government of the country.

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