Assume an economy is operating on its production possibilities curve, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods:Question 5Select one:a.will increase too.b.will not change.c.must decrease.d.may increase or decrease.

Suppose an economy produces consumer goods and capital goods. Its current combination of production involves a higher level of capital goods than consumer goods. Which of the following can be inferred from this current choice on its production possibilities curve?Multiple choice question.That its present choice in production may result in higher future prospects for economic growthThat its future choice in production may result in higher present prospects for economic growthThat its present choice in production has no effect on future prospects for economic growthThat its present choice in production may result in lower future prospects for economic growth

As long as economic losses are being earned in an industry, firms will ________ the industry and the supply curve will shift to the ________.Group of answer choicesenter; rightenter; leftexit; leftexit; right

Question 4If the price of a good falls while supply remains unchanged, then total producer surplus will ____________.1 pointremain unchangeddecreaseWe can’t say.increase

Assume that an economy produces televisions and shoes. Which of the following would cause the production possibilities curve for this economy to shift outward? aAn increase in the labor force bAn increase in the prices of both goods cAn increase in the prices of resources used to produce both goods dA decrease in the demand for shoes eA change in consumers’ tastes in favor of televisions

Which of these would cause an increase in producer surplus?an increase in sales taxa decrease in consumer incomea decrease in price caused by a decrease in the number of buyersan increase in price caused by rising consumer income