Figure 2-6 -Which of the Following Will Most Likely Shift the Production

question 191

Multiple Choice

Figure 2-6
-Which of the following will most likely shift the production possibilities curve for breadfruit and fish outward from AA to BB in Figure 2-6?

• A) an improvement in the form of economic organization
• B) lower investment and a reduction in the country's capital stock
• C) an increase in the price of breadfruit
• D) a decrease in the average number of hours worked

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Definitions:

Limited Liability

A legal structure that limits the financial liability of an individual in a business to their investment in the company, protecting personal assets from business debts and obligations.

Personal Assets

Items of value owned by an individual, including both tangible assets like property and financial assets such as cash and stocks.

Corporate Stockholder

An individual or entity that owns shares in a corporation, thereby holding a portion of its equity.

Net Investment

The total investment in new capital minus depreciation on existing capital, measuring the growth in the stock of productive assets in an economy.