How Will an Increase in the Level of Human Capital,ceteris

question 131

Multiple Choice

How will an increase in the level of human capital,ceteris paribus,affect an economy's production possibilities curve?

• A)Shift the curve inward.
• B)Result in a movement from inside the curve to a point on the curve.
• C)Shift the curve outward.
• D)Result in a movement along the curve.

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Definitions:

Equity

The ownership interest in a company, represented by the amount of money that would be returned to shareholders after paying off all liabilities.

Option Premium

The price paid by the buyer of an options contract to the seller, representing the cost of acquiring the option.

Exercise Price

The price at which the holder of an option can purchase (or sell) the underlying security, such as a stock.

Net Profit

The amount of money left over from revenues after all expenses have been deducted, representing the actual profit of a business.