With Time, Which One of the Following Strategies Will Most

question 179

Multiple Choice

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

• A) passage of legislation reducing the workweek to 30 hours
• B) institution of a tax policy encouraging research that advances technology
• C) institution of a tax policy encouraging consumption at the expense of investment
• D) passage of a law requiring the minimum wage to increase every year

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Definitions:

Profits

The financial gain made in a transaction or the operation of a business after deducting all expenses.

Pure Monopoly

A market structure where a single seller controls the entire market for a particular good or service, with no close substitutes.

Fair-return Price

A price that allows a company to cover its costs and make a reasonable profit.

Short Run

A period in economics where at least one input is considered fixed in the production process.