Which of the Following Could Cause the Production Possibilities Frontier

question 172

Multiple Choice

Which of the following could cause the production possibilities frontier to shift to the right?

• A) more government regulation that stunts economic growth
• B) changes in the rules of the game that stunt economic growth
• C) lower-quality resources
• D) fewer productive resources
• E) production of more capital goods and fewer consumer goods

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Definitions:

Price-Elasticity Coefficients

Numerical values that measure the responsiveness of quantity demanded or supplied to a change in price; they help in assessing how price changes impact demand or supply levels.

Demand Schedules

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Demand Elastic

Describes how sensitive the quantity demanded of a product is to a change in its price.

Total Revenue

The overall amount of money generated by a firm from its sales activities before any costs or expenses are deducted.