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:

Addison's Disease

A disorder in which the adrenal glands produce insufficient amounts of certain hormones, leading to symptoms like fatigue and muscle weakness.

Parathormone

A hormone produced by the parathyroid glands that regulates calcium levels in the blood.

Parathyroid

Small endocrine glands located close to the thyroid gland.

Pituitary

A small gland at the base of the brain that produces hormones influencing growth, metabolism, and reproductive functions.