Figure 2-4 Figure 2-4 Shows Various Points on Three

question 270

Multiple Choice

Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4. Consider the following events:
a. a decrease in the unemployment rate
b. general technological advancement
c. an increase in consumer wealth

Which of the events listed above could cause a movement from V to W?

• A) a only
• B) a and b only
• C) b and c only
• D) a, b, and c

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Definitions:

Human Capital

Abilities, insights, and practice held by a person or community, seen through the lens of their contribution or expenditure to a corporation or state.

Physical Capital

Tangible assets that are used in the production process, such as machinery, buildings, and equipment.

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it affects methods of production, communication, and transportation.

Natural Resources

Materials or substances that occur in nature which can be utilized for economic gain, such as minerals, forests, water, and fertile land.