In the Production Possibilities Framework,economic Growth Is Depicted by the PPF

question 32

Multiple Choice

In the production possibilities framework,economic growth is depicted by the PPF

• A) shifting leftward (toward the origin).
• B) shifting rightward (away from the origin).
• C) becoming a straight line rather than a bowed outward curve.
• D) becoming bowed outward rather than a straight line.

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Definitions:

Variable Costs

Costs that move in parallel with the rate of goods or services output.

Sensitivity Analysis

The study of how the variation in the output of a model can be attributed to different variations in the inputs of the model, used to predict the impact of changes in economic variables.

Earnings Before Taxes

The income a company generates before taking into account the income tax expense.

Sales Price

The amount a buyer pays to purchase a product or service.