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.

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Definitions:

Units Produced

The quantity of items or goods made or produced by a company within a particular period.

Incremental Manufacturing Cost

The additional costs incurred to produce an additional amount of units, excluding fixed costs.

Units Produced

The total quantity of goods manufactured during a specific period.

Product Costs

The costs that are directly associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.