Question

1.) An increase in total factor productivity shifts the PPF

downward, and also changes its slope.

upward, but does not change its slope.

upward, and also changes its slope.

downward, but does not change its slope.

2.) A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that

no one can be made worse off.

someone can be made better off without making someone else worse off.

anyone can be made better off.

someone can be made better off without making everyone else worse off.

3.) In an economic model, an endogenous variable is

determined by the model itself

a variable that has no effect on the workings of the model

determined outside the model

a stand-in for more complicated variables

Answer 1

1) upward, but does not change its slope.

2) someone can be made better off without making someone else worse off.

3) determined by the model itself.