Which of the Following Events Would Allow the Production Possibilities

question 42

Multiple Choice

Which of the following events would allow the production possibilities curve to shift outward?

• A)The economy's capital stock declines.
• B)More teenagers enter the labor force.
• C)Technology is lost.
• D)People begin to retire at earlier ages.

---

Definitions:

Net Income

The financial profit a company has after subtracting all its expenses from its total revenue, indicating its profitability over a specified period.

Goodwill

An intangible asset representing the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.

Legal Entity

A legally constituted organization that has the authority to enter into contracts, sue and be sued, and own assets separately from its owners or members.

Consolidation

The act of merging multiple entities into one, often to streamline operations and reduce costs, or in financial terms, combining financial statements of parent and subsidiary companies.