Which of the Following Would Shift a Nation's Production Possibilities

question 79

Multiple Choice

Which of the following would shift a nation's production possibilities frontier outward?

• A)discovering a more efficient process to desalinate water
• B)an increase in the minimum wage
• C)a decrease in the unemployment rate
• D)more restrictive immigration policies

---

Definitions:

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets, compensating for the risk of fluctuating market conditions.

Expected Return

The projected average return of an investment, taking into account all possible outcomes and their likelihoods.

Beta

A measure of a stock's volatility in relation to the overall market, used in the capital asset pricing model to determine risk.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by the yield on government bonds.