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

Understand the principles and applications of the Net Present Value (NPV) and Equivalent Annual Annuity (EAA) method for evaluating projects.

Identify and explain the limitations and advantages of the replacement chain method in capital budgeting.

Calculate and interpret the Internal Rate of Return (IRR), NPV, and Profitability Index (PI) for different projects.

Analyze cash flow projections to determine the viability of projects through various capital budgeting techniques.