How Can the Production Possibilities Frontiers Shift Outward

question 27

Multiple Choice

How can the production possibilities frontiers shift outward?

• A) if government increases the amount of money in the economy
• B) if there is an increase in technology
• C) if resources can be moved from the production of one good to another
• D) if opportunity costs are reduced

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Definitions:

Periodic Replenishment

Periodic Replenishment refers to the inventory management practice of ordering or producing goods at regular intervals, regardless of the inventory levels.

Continuous Review

A system of managing inventory where the stock levels are continuously monitored, with orders placed as soon as inventory drops to a predetermined level.

Safety Inventory

A quantity of stock kept on hand to prevent stockouts due to variability in supply or demand.

Product Availability

The extent to which a product can be purchased at any given time and location.