An Inward Shift of a Nation's Production Possibilities Frontier Can

question 129

Multiple Choice

An inward shift of a nation's production possibilities frontier can occur due to

• A)a reduction in unemployment.
• B)a natural disaster like a hurricane or bad earthquake.
• C)a change in the amounts of one good desired.
• D)an increase in the labor force.

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Definitions:

Status Quo Bias

A cognitive bias that favors existing conditions or states of affairs, leading individuals to resist change.

Omission Bias

The tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decision Avoidance

The phenomenon where an individual or group deliberately chooses not to make a decision, often to avoid responsibility or negative outcomes.

Certainty Effect

The tendency for people to overweight outcomes that are certain relative to outcomes that are merely probable.