An Increase in General Resources That Affects the Production of Both

question 52

Multiple Choice

An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF) would cause an

• A) inward shift of the PPF.
• B) outward shift of the PPF.
• C) outward rotation along the x axis.
• D) outward rotation along the y axis.
• E) increase in opportunity cost.

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Definitions:

Global Gross Domestic Product

The total market value of all goods and services produced across all countries in the world within a given period, often used as a measure of global economic health.

Largest Economy

The country or region with the highest gross domestic product (GDP) and overall economic activity in the world.

European Union

A political and economic union of 27 member states that are located primarily in Europe, aiming to ensure free movement of people, goods, services, and capital within the internal market.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico that aimed to eliminate most tariffs on products traded among these countries, facilitating increased trade and economic integration.