A Production Possibilities Frontier Can Shift Outward If

question 198

Multiple Choice

A production possibilities frontier can shift outward if

• A)government increases the amount of money in the economy.
• B)there is a technological improvement.
• C)resources are shifted from the production of one good to the production of the other good.
• D)the economy abandons inefficient production methods in favor of efficient production methods.

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Definitions:

Average Operating Assets

The mean worth of resources employed in the functioning of a company throughout a given timeframe.

Sales

The transactions involving the exchange of goods or services for money, considered the primary revenue source for a business.

Year 2

Refers to the second year of a specified time frame, operation, or financial reporting period.

Return on Investment (ROI)

A measure of the profitability of an investment, calculated as the net profit of the investment divided by the initial cost.