Which of the Following Would Not Shift the Production Possibilities

question 147

Multiple Choice

Which of the following would not shift the production possibilities frontier?

• A)An increase in capital stock
• B)A war that destroyed many buildings
• C)A technological improvement that improved fuel efficiency in cars
• D)A decrease in the size of the labor force
• E)A change to a more inefficient production process

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Definitions:

Cash

Currency and coins, along with bank balances, checks, and money orders, that are readily available for use.

Expense Account

An account that tracks money spent or costs incurred in an organization's efforts to generate revenue, representing the cost of doing business.

Credit Balance

The amount that appears on the right side of a ledger account, indicating that a liability has increased or an asset has decreased.

Debt Ratio

The debt ratio is a financial ratio that compares a company's total debt to its total assets, indicating the proportion of a company's funding that comes from debt.