An Increase in Capital Goods and a Decrease in Consumer

question 1

Multiple Choice

An increase in capital goods and a decrease in consumer goods will:

• A) eventually lead to a shift to the right of the production possibilities curve.
• B) increase a nation's capacity to produce.
• C) lead to more rapid economic growth.
• D) do all of the above.

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Definitions:

Legal Liability

The responsibility imposed by law to compensate for or rectify any harm, loss, or damage one's actions or decisions have caused to others.

Sales Taxes

These are taxes imposed by governments on the sale of goods and services.

Sick Pay

Compensation paid by employers to employees during periods when they are unable to work due to illness.

Cumulative Preferred Stock

Cumulative preferred stock is a type of preferred stock that accumulates dividends in case of non-payment in any period, requiring these dividends to be paid out before any dividends to common stockholders.