Exhibit 2-11 Production Possibilities Curves in Exhibit 2-11, Which

question 172

Multiple Choice

Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled B to the one labeled A?

• A)A major natural disaster.
• B)An increase in resources.
• C)An advance in technology.
• D)A decrease in unemployment.
• E)An improvement in literacy.

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Definitions:

Capital Cost Allowance (CCA)

A tax deduction available in Canada for depreciable property that can be used to reduce taxable income.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Projected Cash Flows

Estimated cash movements over a future period, based on expected income and expenses.

NPV

Net Present Value; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.