In Terms of an Economy's Production Possibilities Curve,a Decrease in the Level

question 21

Multiple Choice

In terms of an economy's production possibilities curve,a decrease in the level of human capital,ceteris paribus,will cause

• A)An inward shift of the curve.
• B)A movement from the curve to a point inside the curve.
• C)A movement along the curve.
• D)An expansion of the curve.

---

Definitions:

Shipping Costs

Expenses associated with the transportation of goods from one location to another.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

General Rule

A principle or guideline that applies broadly across different contexts or situations, often serving as a standard for decision-making.

External Sales Price

The price at which a product or service is sold to customers outside of the company, as opposed to internal transfer pricing within different divisions of the same company.