A Production Possibilities Frontier Will Shift Outward FOR ALL OF THE FOLLOWING

question 153

Multiple Choice

A production possibilities frontier will shift outward FOR ALL OF THE FOLLOWING REASONS EXCEPT

• A)a technological improvement.
• B)an increase in the stock of capital.
• C)an increase in the labour force.
• D)an increase in opportunity cost.
• E)an increase in human capital.

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Definitions:

Monopoly Firm

A company that is the sole provider of a product or service in a market, having significant control over pricing and market conditions.

Mutually Beneficial Trades

Transactions between parties that provide benefits to all involved, typically leading to an improvement in overall welfare.

Deadweight Loss

It refers to the loss of economic efficiency when the equilibrium outcome is not achievable or is not achieved.

Monopoly

A market condition where a single firm has exclusive control over a product or service, allowing it to limit competition and set prices.