All Other Things Unchanged, Which of the Following Events Leads

question 129

Multiple Choice

All other things unchanged, which of the following events leads to a shift further outward in the country's production possibility curve?

• A) Its labor force participation rate decreases by 5% per year compared to 3% per year.
• B) Its saving rate falls from 8% to 1% per year.
• C) Government expenditures on basic research increases by 10% per year.
• D) The number of students completing college education falls.

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Definitions:

Becoming Profitable

The process of achieving a financial state where revenues exceed expenses, leading to net income.

Partnership

When two or more people agree to contribute resources to start and operate a business together.

Contribute Resources

involves providing or dedicating assets or capabilities, such as time, money, or expertise, to support a project, initiative, or cause.

Angel Investor

A wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.