The Production Possibilities Curve for the Nation of Economania Shifts

question 109

Multiple Choice

The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:

• A) a decrease in Economania's capital stock.
• B) a decrease in the Economania's labor supply.
• C) high unemployment in Economania the previous time period.
• D) Economania producing all consumer goods in the previous period.
• E) technological innovation in the production of Economania goods.

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Definitions:

Extending Credit

The act of granting a customer the ability to purchase goods or services now and pay for them at a later date, based on trust that payment will be made in the future.

Consumer Credit

Financing extended to consumers to allow them to purchase goods and services and repay the money over time.

Agricultural Purposes

Activities related to the cultivation of land, raising crops, and feeding, breeding, and managing livestock.

Fair Credit Reporting Act

U.S. federal legislation designed to promote accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.