With Time, Which One of the Following Strategies Would Most

question 238

Multiple Choice

With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?

• A) passage of legislation reducing the workweek to 30 hours
• B) instituting a tax policy encouraging consumption at the expense of investment
• C) instituting a tax policy encouraging investment at the expense of consumption
• D) an increase in the marginal income tax rate, which would reduce the work effort of individuals

---

Definitions:

Shopkeeper

An individual who owns or manages a small retail store or establishment.

Haggling Customer

A shopper who negotiates the price of goods or services with the seller to obtain a lower price.

Sequential Game

A type of game in game theory where players make decisions one after another, allowing for the observation of previous decisions before making one's own.

Shopkeeper

An individual who owns or manages a small retail business, selling goods to the public.