Figure 2-2 -Which of the Following Would Most Likely Cause the Production

question 122

Multiple Choice

Figure 2-2
-Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?

• A) a decrease in the labor force of the country
• B) a sudden change in consumer preferences for more fish and less breadfruit
• C) a major technological advance
• D) a decrease in the capital stock

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Definitions:

Capital Flight

The large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, reducing the nation's investment capacity.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period.

Net Exports

The value of a country's total exports minus its total imports, representing the trade balance within a specific period.

Tariffs

Taxes or duties imposed on imported goods to make them more expensive compared to domestic goods, often used to protect local industries.