DE 01

9. The production possibilities curve tells us:

A. The specific combination of two products that is most desired by society.

B. That costs do not change as society varies its output.

C. Costs are irrelevant in a society that has fixed resources.

D. The combinations of two goods that can be produced with society's available resources.

10. Which of the following will shift the production possibilities curve to the right?

A. An increase in the unemployment rate from 6 to 8 percent.

B. A decline in the efficiency with which the present labor force is allocated.

C. A decrease in the unemployment rate from 8 to 6 percent.

D. A technological advancement that allows farmers to produce more output from given inputs.