Which of the Following Could Cause the Production Possibilities Frontier

question 132

Multiple Choice

Which of the following could cause the production possibilities frontier to shift to the right?

• A)More government regulation that stunts economic growth
• B)Changes in the rules of the game that stunt economic growth
• C)Lower quality resources
• D)Fewer productive resources
• E)Production of more capital goods and fewer consumer goods

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Definitions:

Overhead

Overhead refers to ongoing business expenses that are not directly tied to producing a specific product or service, such as rent, utilities, and administrative costs.

Underapplied

A situation where the allocated indirect costs are less than the actual indirect costs incurred.

Overapplied

A situation where the overhead costs applied to products or services exceed the actual overhead costs incurred.

Adjusted Cost of Goods Sold

The cost of goods sold after adjustments for changes in inventory levels and other factors affecting cost of goods sold.