Which of the Following Correctly Describes the Relationship Between Productivity

question 108

Multiple Choice

Which of the following correctly describes the relationship between productivity growth,unemployment,and the economy's production possibilities frontier?

• A) An increase in productivity moves the economy from inside the production possibilities set to its frontier.
• B) An increase in productivity shifts the economy from the production possibilities frontier to a point outside the production possibilities set.
• C) An increase in unemployment shifts the economy further inside its production possibilities set.
• D) An increase in unemployment shifts the economy from a point outside the production set back to the production possibilities frontier.
• E) A reduction in unemployment shifts the entire production possibilities frontier outward.

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Definitions:

Hexagon of Strategy

A conceptual model that outlines six essential components of strategic planning, including vision, resources, market positioning, competitive advantage, systems, and value proposition.

Differentiation Strategy

A business approach where a company develops products or services that provide unique attributes valued by customers, distinguishing them from competitors' offerings.

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An analytical tool used to determine the best strategy for business growth by analyzing existing and potential products and markets.