The Following Figure Has Four Graphs Showing the Production Possibilities

question 3

Multiple Choice

The following figure has four graphs showing the production possibilities frontier for capital goods and consumer goods. Which of the graphs below best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?

• A) a.
• B) b.
• C) c.
• D) d.
• E) b and d.

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Definitions:

Preferred Stock

Preferred stock is a class of stock that typically provides a fixed dividend and has precedence over common stock in the distribution of assets in the event of a company's liquidation.

Common Stock

Common Stock represents ownership shares in a corporation, providing voting rights and entitling the shareholder to a share of the company's profits through dividends.

Stock Options

Financial instruments granting the holder the right to buy or sell stock at a specified price before a certain date.