In Figure 1

question 96

Multiple Choice

In Figure 1.4,a shift of the production possibilities curve from PP1 to PP2 could be caused by

• A)An increase in the unemployment rate.
• B)Implementation of training programs that improve the skills of workers.
• C)A flu epidemic that makes many workers sick.
• D)Tougher pollution controls for the producers of televisions and smartphones.

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Definitions:

Inventory Valuation

The method used to calculate the cost associated with an inventory, which can impact the cost of goods sold and net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's actual financial performance over a specific period.

Rapidly Rising Costs

A situation where the expenses associated with producing goods or services increase at a faster pace than usual, affecting profitability.

LIFO Method

LIFO method, or Last-In, First-Out, is an inventory valuation method where the most recently produced or acquired items are the first to be sold, affecting cost of goods sold and inventory valuation.