Q1. True or false: Moving from one point on the production possibility curve to another point on the curve means there has been a change in productive efficiency.

A1.

Q2. True or false: Improvements in technology results in the supply curve shifting to the left leading to an increase in equilibrium price.

A2.

Q3. True or False: An increase in demand and increase in supply will lead to an increase in equilibrium price and an increase in equilibrium output.

A3.

Q4. True or False:When a sales tax is imposed, over the relevant price range, the more inelastic the demand, the smaller is the portion of tax that is shifted to consumers, other things being the same.

A4.