The Effect of an Increase in Productive Inputs Such as Labor

question 154

Multiple Choice

The effect of an increase in productive inputs such as labor and capital can be shown by a(n) :

• A)point inside of the production possibility frontier.
• B)outward shift of the production possibility frontier.
• C)movement from one point to another along the production possibility frontier.
• D)inward shift of the production possibility frontier.

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Definitions:

Transit Bus Technicians

Skilled professionals responsible for the maintenance and repair of buses used in public transportation.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Present Value

The valuation in today's terms of a future sum or series of financial inflows, taking into account a particular rate of return.

Investment Cost

Investment cost refers to the total amount of money spent to acquire an asset, including purchase price and all associated expenses.