Answers to Practice PPFGiddy up

New robot making technologyQ

Q

Rob

ots

Pizzas

Question #1

2

A shift only for Robots

Decrease in the demand for pizzaQ

Q

Rob

ots

Pizzas

Question #2

3

The curve doesn’t shift!A change in demand

doesn’t shift the curve

Mad cow disease kills 85% of cowsQ

Q

Rob

ots

Pizzas

Question #3

4

A shift inward only for Pizza

Destruction of power plantsQ

QCap

ital G

oods

(Gun

s)

Consumer Goods (Butter)

Question #4

5

Decrease in resources decrease production

possibilities for both

Faster computer hardwareQ

QCap

ital G

oods

(Gun

s)

Consumer Goods (Butter)

Question #5

6

Quality of a resource improves shifting the

curve outward

Many workers unemployedQ

QCap

ital G

oods

(Gun

s)

Consumer Goods (Butter)

Question #6

7

The curve doesn’t shift!Unemployment is just a point inside the curve

Significant increases in educationQ

QCap

ital G

oods

(Gun

s)

Consumer Goods (Butter)

Question #7

8

The quality of labor is improved. Curve shifts

outward.