Use the Following to Answer Question

question 234

Multiple Choice

Use the following to answer question:

-(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods.The movement from curve 1 to curve 2 indicates a(n) :

• A)growing ability of the economy to produce capital and consumer goods.
• B)increase in the stock market.
• C)decrease in the factors of production.
• D)shift of the production possibility frontier toward producing fewer goods.

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Definitions:

Financial Resources

Assets in the form of cash, credit, or other financial assets that are available to an individual or organization for use.

Total Economic Cost

The sum of explicit and implicit costs associated with a business activity or decision, considering both direct financial outlays and opportunity costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Production

The process of creating goods or services by combining labor, materials, and capital.