A Production Possibilities Frontier Can Shift Inward If There Is

question 89

Multiple Choice

A production possibilities frontier can shift inward if there is:

• A)an increase in the unemployment rate.
• B)a stable political environment.
• C)an improvement in technology.
• D)larger work force.
• E)a larger capital stock.

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Definitions:

Activity Is Higher

A state indicating increased levels of operations or actions in a given context.

Variable Overhead Efficiency Variance

The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.

Insufficient Demand

A situation where the quantity of a product or service desired by consumers is less than what is supplied in the market.

Excessive Inventories

A situation where a company holds more stock than what is effectively required, leading to increased storage costs and possible obsolescence.