Which of the Following Would Not Shift the Production Possibilities

question 125

Multiple Choice

Which of the following would not shift the production possibilities frontier?

• A) an increase in capital stock
• B) a war that destroyed many buildings
• C) a technological improvement that improved the fuel efficiency of cars
• D) a decrease in the size of the labor force
• E) no change in the production process

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Definitions:

Insolvent

A financial state in which an individual or entity cannot meet its debt obligations as they come due, or its liabilities exceed its assets.

Debt Payment

The act of paying back the principal and interest on borrowed money, typically according to a predetermined schedule.

Risk

The potential for losing something of value or the possibility of an adverse outcome.

Equity Funds

Investments that are made into companies by purchasing shares, thereby gaining an equity interest in the company.