The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this
distinction. Poornima spends all of her money on paperback novels and mandarins. In 2012, she earned $27.00 per hour, the price of a paperback novel was $9.00, and the price of a mandarin was $3.00.
Which of the following give the nominal value of a variable? Check all that apply.
-The price of a beignet is $3.00 in 2012.
-Maria's wage is $27.00 per hour in 2012.
-The price of a beignet is 0.33 paperback novels in 2012.
Which of the following give the nominal value of a variable? Check all that apply.
-The price of a beignet is $3.00 in 2012.
-Maria's wage is $27.00 per hour in 2012.
-The price of a beignet is 0.33 paperback novels in 2012.
1 answer:
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Answer: B - a general improvement in technology affecting production of all goods
Explanation: The Production Possibility Frontier is a curve that shows the two combination of goods an economy can produce when all its factors of production are efficiently used.
Technological progress shifts the curve outward, away from the origin as more output would be produced using the same combination of factor inputs.
Shifting of resources from butter to gun would lead to movements along the curve as more gun would be produced and less butter.
Pacifism becoming less popular which increases gun production, would cause movement along the curve.
Increase in consumer desire for butter increase the amount of butter produced . This would generate a movement along the curve
