A Move from Inside the Production Possibilities Boundary to the Boundary

question 103

Multiple Choice

A move from inside the production possibilities boundary to the boundary itself could be caused by

• A)the employment of previously idle resources.
• B)a reallocation of resources from military to civilian goods.
• C)technological progress.
• D)an increase in the labour supply.
• E)an improvement in the government's ability to control its spending.

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Definitions:

Risk

Exposure to danger, harm, or loss, often considered in financial contexts such as investments or business ventures.

Trade Credit

A financial arrangement where a buyer is allowed to purchase goods or services and pay for them at a later date.

Rate of Interest

The percentage of a loan amount charged for borrowing money, expressed as an annual percentage of the principal.

Cash Discount

A reduction in the price paid for goods or services if payment is made in cash or within a certain time period.