Which of the Following Would Shift the Production Possibilities Frontier

question 47

Multiple Choice

Which of the following would shift the production possibilities frontier outward?

• A) an increase in the size of the labor force
• B) existing resources and technology being used more efficiently
• C) more money being printed by the government
• D) the end of a strike by a labor union
• E) society's desire to produce more of one of the goods

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Definitions:

Contract Rate

The predetermined fee or rate agreed upon in a contract for services rendered or goods sold.

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

Premium

A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par to record the premium received.

Discount

A reduction in the price of goods or services, often used as a sales promotion or to encourage early payment.