Consider a Production Possibilities Boundary Showing the Quantity of Military

question 7

Multiple Choice

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes. A movement along the production possibilities boundary could be caused by

• A)an increase in the labour supply.
• B)the employment of previously idle resources.
• C)the reallocation of resources between military and civilian goods.
• D)technological progress.
• E)the growth of productive capacity.

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Definitions:

Taxed

Subjected to a financial charge or levy by a government on income, goods, or activities.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, resulting in those who have higher incomes being taxed at a higher rate.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income increases.

Proportional Tax

A tax system wherein the tax rate is fixed and applied uniformly to all taxpayers, regardless of their income level.