Other Things Equal, Which of the Following Would Shift an Economy's

question 173

Multiple Choice

Other things equal, which of the following would shift an economy's production possibilities curve to the left?

• A)the discovery of a low-cost means of generating and storing solar energy
• B)the entrance of more women into the labour force
• C)a law requiring mandatory retirement from the labour force at age 55
• D)an increase in the proportion of total output which consists of capital or investment goods

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Definitions:

Labor

The exertion of human energy, both bodily and cognitive, employed in generating goods and services.

Leisure

Free time when one is not working or occupied, which can be used for rest, entertainment, or activities one enjoys.

Nonlabor Income

Income received that is not related to wages or salaries, such as income from investments, pensions, or social security.

Wage Rate

The standardized amount of pay that a worker receives for performing a specific task, usually expressed per hour or unit of work.