Which of the Following Will Shift the Production Possibilities Curve

question 117

Multiple Choice

Which of the following will shift the production possibilities curve to the right?

• A) an increase in the unemployment rate from 6 to 8 percent
• B) a decline in the efficiency with which the present labor force is allocated
• C) a decrease in the unemployment rate from 8 to 6 percent
• D) a technological advance that allows farmers to produce more output from given inputs

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Definitions:

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment, or in business, the use of various techniques to maximize outcomes.

Ability to Generate Cash

The capacity of a business to convert activities or assets into liquid funds to meet short-term obligations and support operations.

Financial Strength

A term that refers to the financial stability and health of an organization, often assessed through metrics such as liquidity, solvency, and profitability.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.