Which of the Following Causes an Outward Shift in the Production

question 190

Multiple Choice

Which of the following causes an outward shift in the Production Possibilities Curve?

• A) A decrease in unemployment.
• B) A loss in the productive capacity of agricultural acreage caused by a prolonged drought.
• C) An increase in the productivity of all factors of production.
• D) Shifting resources away from the production of one good toward another.

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Definitions:

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection of customers' payment checks through a special post office box.

Bank

A financial institution that accepts deposits, offers loans, and provides other financial services.

Average Daily Receipts

The average amount of cash flow received by a business per day over a defined period of time.

Collection Delay

The time lag between when a sale is made and when the payment is actually received, affecting cash flow.