Assume That a Change in Government Policy Results in the Increased

question 232

Multiple Choice

Assume that a change in government policy results in the increased production of both consumer goods and investment goods.It can be concluded that:

• A)the economy was suffering from unemployment and/or the inefficient use of resources before the policy change.
• B)the economy's production possibilities curve has been shifted to the left as a result of the policy decision.
• C)this economy's production possibilities curve is convex (bowed inward) as viewed from the origin.
• D)the law of increasing opportunity costs does not apply in this society.

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Definitions:

Qualification Purposes

The specific reasons or objectives for requiring or seeking a particular certification, status, or level of skill.

Stock of Goods

The inventory of products or goods that a company has on hand to sell to customers.

Independent Distributors

Businesses or individuals that distribute products or services, but are not directly employed by the manufacturers of those products, allowing for operational and financial autonomy.

Internal Affairs

A doctrine in corporate law that allows the internal affairs of a corporation, such as shareholder rights, to be governed by the laws of the state of incorporation.