Refer to the Information Provided in Figure 2

question 189

Multiple Choice

Refer to the information provided in Figure 2.6 below to answer the question(s) that follow. Figure 2.6
-Refer to Figure 2.6. Which of the following will shift an economy's production possibility frontier from ppf¹ to ppf²?

• A) a decrease in unemployment
• B) an increase in production efficiency
• C) a change in consumers' tastes
• D) an increase in the economy's capital stock

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Definitions:

Tacit Collusion

Cooperation among producers, without a formal agreement, to limit production and raise prices so as to raise one another’s profits.

Competing Producers

Entities or companies that are in the same market striving to gain market share by offering better products, price, or services.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and freedom of entry and exit, leading to price takers.

Barriers To Entry

Economic, procedural, or regulatory obstacles that prevent or deter new competitors from easily entering an industry or area of business.