A Nation's Production Possibilities Curve Should,ceteris Paribus,shift

question 144

Multiple Choice

A nation's production possibilities curve should,ceteris paribus,shift

• A)Inward if gross investment exceeds depreciation.
• B)Inward if net investment is zero.
• C)Outward if net investment is positive.
• D)Outward if gross investment is positive.

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Definitions:

Opportunity Cost

Foregoing the chance to benefit from other alternatives when one choice is made.

Lottery Tickets

Pieces of paper or digital receipts purchased in hopes of winning a large sum of money through a process of random selection.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for every possible quantity of another good produced, given available resources and technology.

Decreasing Opportunity Costs

A situation in which the opportunity costs of resources decrease as more of a good is produced.