Refer to the Accompanying Graph

question 103

Multiple Choice

Refer to the accompanying graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by which of the following factors?

• A) a decrease in the price level
• B) allocative efficiency
• C) technological progress
• D) full employment of resources

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Definitions:

Contingency

Contingency refers to a future event or circumstance that is possible but cannot be predicted with certainty, often implying the need for plans to address potential changes.

Scientific Management

A theory of management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Open Systems

Organizations or entities that interact dynamically with their environment, adapting and exchanging resources and information.

Functional

Pertaining to the practical or utilitarian use of something, often emphasizing how something works or operates within a system or organization.