Multiple Choice
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. A fall in the gross domestic product of the country will lead to:
A) a leftward shift in the production possibility curve.
B) a rightward shift in the production possibility curve.
C) an increase in the consumption of luxury goods.
D) an upward movement along the production possibility curve.
E) no change in the consumption pattern of the country.
Correct Answer:

Verified
Correct Answer:
Verified
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