Which of the Following Would Shift the Production Possibilities Frontier

question 116

Multiple Choice

Which of the following would shift the production possibilities frontier outward?

• A)An increase in the size of the labor force
• B)More efficient use of existing resources and technology
• C)The government prints more money
• D)The end of a strike by a labor union
• E)Society's desire to produce more of one of the goods

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Definitions:

Coupon Bond

A type of bond that pays the holder a regular interest rate (or coupon) in addition to the principal amount at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date.

Par Value

The face value of a bond or the stated value of a stock, set at the time of issuance and often used in determining its worth at maturity.

Coupon Rate

The interest rate that an issuer of a bond promises to pay annually or semi-annually to the holder.