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Figure 2-8 -Assume That U.S.agricultural Land Is Used Either to Raise Cotton

Question 26

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Figure 2-8
Figure 2-8    -Assume that U.S.agricultural land is used either to raise cotton for clothing or to grow wheat.Curve FG in Figure 2-8 represents the current production possibilities frontier for cotton and wheat.What could cause the production possibilities frontier to shift from FG to FH? A)  a change in government subsidies that favors wheat production over cotton production B)  development of a new fertilizer that improves production of wheat,but has no impact on cotton production C)  development of a new fertilizer that improves production of cotton,but has no impact on wheat production D)  newly reclaimed swampland that is equally suited to growing either crop E)  newly reclaimed swampland that can be used to grow either crop,but is better suited to growing wheat
-Assume that U.S.agricultural land is used either to raise cotton for clothing or to grow wheat.Curve FG in Figure 2-8 represents the current production possibilities frontier for cotton and wheat.What could cause the production possibilities frontier to shift from FG to FH?


A) a change in government subsidies that favors wheat production over cotton production
B) development of a new fertilizer that improves production of wheat,but has no impact on cotton production
C) development of a new fertilizer that improves production of cotton,but has no impact on wheat production
D) newly reclaimed swampland that is equally suited to growing either crop
E) newly reclaimed swampland that can be used to grow either crop,but is better suited to growing wheat

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