Identify the Cause and the Effect Contained in Each of the Following

question 11

Multiple Choice

Identify the cause and the effect contained in each of the following statements. The factory is adding a second shift and hiring more employees because orders have increased.

• A) Cause: the factory is adding a second shift and hiring more employees Effect: orders have increased
• B) Cause: orders have increased Effect: the factory is adding a second shift and hiring more employees

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Definitions:

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.

Concave Production Possibilities Curve

A graphical representation indicating increasing opportunity costs as more of one good is produced, resulting in a bowed-out shape.

Economic Resources

These are the assets, materials, and inputs used to produce goods and services, including labor, capital, and natural resources.

Opportunity Costs

The value of the foregone alternative when a decision is made; essentially, the cost of choosing one option over another.