The Production Possibilities Curve for the Nation of Economagic Shifts

question 2

Multiple Choice

The production possibilities curve for the nation of Economagic shifts to the left.This could have been caused by:

• A)an increase in Economagic's labour supply.
• B)innovation in the production of goods in Economagic.
• C)a war that destroyed some of Economagic's resource base.
• D)unemployment among Economagic's workers.
• E)Economagic's choice of more consumption and less capital in the last period.

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Definitions:

Base Pay

The initial rate of compensation an employee receives, not including benefits, bonuses, or other potential earnings.

Standard Hour Plans

Compensation systems where employees are paid a set rate for each unit of time worked, calculating earnings based on the number of hours worked at a predetermined rate.

Automobile Dealerships

Businesses that specialize in selling new or used cars at the retail level, often under a dealership contract with an automaker.

Straight Piecework

An incentive plan under which employees receive a certain rate for each unit produced.