Which of the Following Will Shift the Production Possibilities Curve

question 245

Multiple Choice

Which of the following will shift the production possibilities curve to the right?

• A)an increase in the unemployment rate from 6 to 8 percent
• B)a decline in the efficiency with which the present labour force is allocated
• C)a decrease in the unemployment rate from 8 to 6 percent
• D)a technological advance which allows farmers to produce more output from given inputs

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Definitions:

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the net benefit to society, considering both production and desires of consumers.

Simultaneous Consumption

A consumption pattern in which a product or service is consumed by multiple users at the same time without reducing its availability to others.

Economies of Scale

The financial benefits companies experience from expanding their operation's size, where there's a general trend of decreasing unit costs with the growth in scale.