Micro 1.3-THE PPF and Borderline Macroeconomics

We are looking at the PPF....in terms of NOT invidual market goods....but in terms of WHOLE economy production. ALL CONSUMER GOODS PRODUCED vs. ALL CAPITAL GOODS PRODUCED. Remember that companies can sell consumer goods to you...like Samsung sells Washing Machines to households. Companies can also produce and sell capital goods...like John Deer produces and sells Tractors to farmers. Companies can choose to make consumer goods, capital goods, or a combination of the two.

1

Match the points to their situation.

Draggable item		Corresponding Item
4		Due to an ongoing pandemic, restaurants remain closed leaving a lot of workers unemployed.
1		The pandemic is over and disposable income is high.
2		Companies hire workers for seasonal work and have their usual workers work overtime during the month of December.
3		Inventories are full in retailers across the US. Individuals are simply not shopping

Match the points to their situation.

From 2012 to 2017, this country experienced...

Which of these could have attributed to the change between 2012 and 2017?

In 2012, starting at point D...Consumers see a rise in wages. Production will move towards...

In 2017, starting at point G...Employers fear an oncoming recession (period where consumers have low income). Production will move towards...

In 2017, starting at point C...Factories become abandoned due to extreme government regulations. Production will move towards...