Which of the Following Events Create an Outward Shift of the Production

question 205

Multiple Choice

Which of the following events create an outward shift of the production possibilities curve?

• A)The United States moves resources from the production of goods for domestic production to the production of goods for export.
• B)Tax reductions reduce the cost and increase the amount of investment in factories, machinery, and research and development.
• C)There is an migration of young people to another country where there is more political freedom.
• D)The unemployment rate falls from 33 percent to 12 percent.

---

Definitions:

Behavioral Assumptions

The hypotheses or beliefs about how individuals make economic decisions, often based on their psychological characteristics.

Economic Models

Simplified representations of complex economic processes, used to predict or analyze economic behaviors and outcomes.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

National Debt

The net accumulation of federal budget deficits.