Which Factor Is MOST Likely to Shift an Entire PPF

question 16

Multiple Choice

Which factor is MOST likely to shift an entire PPF outward?

• A) a natural disaster that disrupts production
• B) a general increase in the price of inputs
• C) a technology improvement in one key industry
• D) a general increase in educational attainment

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Definitions:

Simple Interest

Simple interest is a method of calculating interest where the interest charge is based solely on the principal amount, not on previously earned interest.

Discounted

The process of determining the present value of a future amount by applying a discount rate.

Simple Interest

Simple interest is a way of calculating interest where the amount earned or paid is based on the original principal and does not compound.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.