The Production Possibilities Frontier of an Economy Can Shift Inward

question 116

Multiple Choice

The production possibilities frontier of an economy can shift inward if there is _____

• A) a natural disaster in the economy.
• B) a stable political environment in the economy.
• C) an improvement in technology in the economy.
• D) a larger work force in the economy.
• E) a larger capital stock in the economy.

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Definitions:

Lost Revenue

Revenue that was expected but not received, often due to unforeseen circumstances or decisions leading to missed opportunities.

Long-Run Cost Curve

A graphical representation showing the minimum cost at which any given level of output can be produced in the long run, where all inputs are variable.

Industry Supply Curve

A graphical representation showing the quantities of a product that firms across an industry are willing to supply at different price levels.

Lump Sum Tax

A tax that is a fixed amount, regardless of the taxpayer’s income level, assets, or usage of services.